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

Peru Dollar Borrowing Costs Rise on Europe Debt Crisis Concern

Sept. 18 (Bloomberg) -- Peru’s benchmark borrowing costs in dollars rose for a second straight day as European sovereign-debt concern curbed demand for higher-yielding, emerging-market assets.

The extra yield investors demand to own Peruvian government bonds instead of U.S. Treasuries increased four basis points, or 0.04 percentage point, to 117 basis points at 2:52 p.m. in Lima, according to JPMorgan Chase & Co.

European Central Bank Governing Council member Luc Coene said yesterday that rising bond yields may force Spain to seek assistance and submit to ECB conditions for aid.

Coene’s comments “brought people’s attention back to Europe” and may have spurred “short-term profit-taking after QE,” said Kenneth Lam, a strategist at Citigroup Inc. in New York, referring to the Federal Reserve’s third round of asset purchases known as quantitative easing announced Sept. 13.

The sol was little changed at 2.6020 per dollar, according to Deutsche Bank AG’s local unit. Peru’s central bank said on its website that it bought $40 million in the spot currency market today and paid an average 2.6026 soles per dollar.

To contact the reporter on this story: John Quigley in Lima at jquigley8@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.