Peruvian bonds rose, pushing yields to a seven-week low, as U.S. economic reports beat forecasts, boosting demand for the South American nation’s assets.
The yield on the nation’s 7.84 percent sol-denominated bond due in August 2020 declined one basis point, or 0.01 percentage point, to 5.02 percent, according to prices compiled by Bloomberg. That was the lowest yield on a closing basis since May 4. The bond’s price increased 0.05 centimo to 118.50 centimos per sol.
“With U.S. rates very, very low, many real money investors are looking for opportunities in the emerging-market space,” said Diego Donadio, a Latin America strategist at BNP Paribas in Sao Paulo. Peru is one of the most attractive debt markets in Latin America for investors pulling out of recession-hit countries on the European periphery such as Spain, he said.
U.S. equities rallied as reports showed more Americans than economist forecast signed contracts in May to purchase previously owned homes. Orders for durable goods climbed last month more than projected.
The sol was unchanged at 2.6635 per U.S. dollar at today’s close, according to Deutsche Bank AG’s local unit. The central bank didn’t buy or sell dollars in the spot market today.