Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Colombia’s Peso Bond Yields Fall on Lower Inflation Outlook

April 19 (Bloomberg) -- Colombia’s peso bonds rose, pushing yields on benchmark securities lower for the first time in four days, as reduced inflation bets boosted the appeal of the fixed-rate debt.

The yield on Colombia’s 10 percent peso-denominated debt due in July 2024 fell four basis points, or 0.04 percentage point, to 7.09 percent, according to the central bank. The bond’s price rose 0.359 centavo to 123.276 centavos per peso.

“Lower inflation expectations continue to drive gains” in peso bonds, known as TES, said Juan Camilo Santana, an analyst at Cia. de Profesionales de Bolsa SA, a brokerage in Bogota. “Although it’s raining again, people aren’t worried the weather is going to pressure inflation.”

Colombia’s inflation will end this year at 3.29 percent, according to the median estimate in a central bank survey published April 12, down from a projected 3.45 percent expansion in the March survey. Annual inflation slowed to 3.40 percent in March, the national statistics agency said in an April 4 report, less than the 3.63 percent median estimate among economists in a Bloomberg News survey. Banco de la Republica has an inflation target of between 2 percent and 4 percent this year.

Rainfall soaking farms in central growing areas this month probably will last through June, Colombia’s state-run weather agency said in an April 16 statement. Floods in 2010 and 2011 damaged crops and choked off farmers’ supply routes, pushing food prices higher.

The peso was little changed at 1,774 per U.S. dollar. The peso is up 9.3 percent this year, the best performer among all currencies tracked by Bloomberg.

To contact the reporter on this story: Andrea Jaramillo in Bogota at ajaramillo1@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.