Peruvian bond yields increased the most in four months after a leading economic index for China rose at a slower pace in February, damping the outlook for the Andean nation’s metal exports.
The yield on the nation’s benchmark 7.84 percent sol-denominated bond due August 2020 climbed five basis points, or 0.05 percentage point, to 5.46 percent at 4:32 p.m. in Lima, according to prices compiled by Bloomberg. That’s the steepest rise since Dec. 12. The security’s price fell 0.37 centimo to 115.75 centimos per sol.
The gauge of Chinese activity gained 0.8 percent in February from the previous month, the Conference Board, a New York-based research group, said today, citing a preliminary reading. The index rose 1.5 percent in January. The data added to concern the world’s second-largest economy is slowing after retail sales and manufacturing eased and home prices declined. Chinese demand for copper, gold and iron ore made it Peru’s top export market last year.
“ There are worries about China demand and metals that Peru produces,” said Bret Rosen, a Latin America strategist at Standard Chartered Bank in New York.
Peru’s overseas sales of copper by volume fell 15 percent in February, compared with the same month a year earlier, export group Comexperu said today, citing preliminary customs data.
The sol was unchanged at 2.6690 per U.S. dollar at today’s close, according to Deutsche Bank AG’s local unit.
The central bank said it didn’t buy or sell dollars in the spot market today.