Colombia Bond Yields Fall to Record on Reinvestment Speculation
Colombia’s peso bond yields fell to a new low on speculation coupon payments coming due this month will be reinvested in the government securities.
The yield on the government’s 10 percent peso-denominated bonds due in July 2024 dropped two basis points, or 0.02 percentage point, to 6.03 percent at 10:28 a.m. in Bogota, according to the central bank. That’s the lowest level on a closing basis since the debt was first sold in 2009. The price increased 0.235 centavo to 132.747 centavos per peso.
“There’s a lot of liquidity in the market and more will come in” given the 2.5 trillion pesos ($1.39 billion) in coupon payments, said Catalina Silva, a fixed-income analyst at Cia. de Profesionales de Bolsa in Bogota.
A majority of central bank board members voted to keep the benchmark rate unchanged at 4.75 percent, according to the minutes of their Sept. 28 meeting released today.
The peso advanced 0.1 percent to 1,798.02 per U.S. dollar. It has fallen 0.1 percent this week and has rallied 7.9 percent this year.
To contact the reporter on this story: Andrea Jaramillo in Bogota at email@example.com
To contact the editor responsible for this story: David Papadopoulos at firstname.lastname@example.org