Peruvian dollar bonds rose, pushing down yields the most in three months, as the outlook for low interest rates in the U.S. and bets Europe’s debt crisis will ease boosted demand for higher-yielding assets.
The yield on the nation’s benchmark 6.55 percent dollar-denominated bond due March 2037 dropped nine basis points, or 0.09 percentage point, to 4.77 percent. The bond’s price rose 1.5 cent from yesterday to 125.96 cents per dollar.
European Union leaders meeting in Brussels agreed to tighter budget controls and decided to bring the region’s permanent bailout fund into operation on July 1, a year before schedule. The U.S. Federal Reserve pledged Jan. 25 to maintain low interest rates through at least late 2014.
“The international context has generally been supportive” for Peruvian government debt, said Bret Rosen, a strategist at Standard Chartered Bank in New York.
The yield on the nation’s benchmark 7.84 percent sol-denominated bond due August 2020 fell two basis points to 5.70 percent, according to prices compiled by Bloomberg.
The sol gained 0.1 percent to 2.6890 per U.S. dollar, from 2.6905 yesterday, according to Deutsche Bank AG’s local unit.
Peru’s central bank bought $53 million in the spot currency market today to stem gains in the sol. The bank paid 2.6890 soles per dollar, according to a statement on its website.