Peru’s benchmark dollar bonds fell, pushing up yields the most in five weeks, as concern Europe’s sovereign debt crisis may worsen curbed demand for higher-yielding assets.
The yield on the nation’s benchmark 6.55 percent dollar-denominated bond due March 2037 climbed one basis point, 0.01 percentage point, to 4.72 percent at 2:18 p.m. New York time. That’s the steepest rise since Nov. 29. The bond’s price fell 0.24 cent to 126.76 cents per dollar.
The European Central Bank reported overnight deposits from financial institutions rose to an all-time high and Luxembourg Prime Minister Jean-Claude Juncker said the European Union is facing a recession of unknown scope. Copper, Peru’s top export, fell.
“The predominant force this year will continue to be what happens in Europe,” said Benito Berber, an emerging-markets analyst at Nomura Securities Inc. in New York.
The sol was little changed at 2.6940 per U.S. dollar, from 2.6950 yesterday.
The extra yield investors demand to own Peruvian government bonds instead of U.S. Treasuries fell three basis points to 204, according to JPMorgan Chase & Co.