July 27 (Bloomberg) -- Peruvian dollar-denominated bonds gained as speculation European leaders will act to ease the euro-region’s debt crisis buoyed demand for higher-yielding emerging-market assets.
The yield on the nation’s benchmark 6.55 percent dollar bond due March 2037 fell two basis points, or 0.02 percentage point, to 3.74 percent. That’s the lowest yield since the security was issued in 2007. Peru’s local currency market is closed today in celebration of Independence Day.
Global stocks rose on bets Europe may move toward a new round of bond buying to ease borrowing costs. German Chancellor Angela Merkel and French President Francois Hollande echoed yesterday’s pledge by European Central Bank President Mario Draghi that they will do everything possible to protect the euro.
“Markets are on a positive note,” Mario Guerrero, an economist at Scotiabank in Lima, said in a phone interview. “That’s helping Peruvian bonds continue the significant rally we’ve seen” amid record foreign investment flows and forecasts the economy will grow as much as 6 percent this year, he said.
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