Chile’s Bond Market Trembles After Central Bank Hints at Rate Cut

  • Maturities for nominal and UF Chilean swaps hit record lows
  • Traders wait for adjustments to growth, neutral rate forecasts

The silhouettes of shoppers are seen purchasing food at a stand in Santiago, Chile.

Photographer: Luis Enrique Ascui/Bloomberg
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Chile’s fixed-income market is still trembling after the central bank said it is considering cutting its benchmark interest rate.

Medium- and long-term maturities in both nominal and inflation-linked Chilean swap curves fell to record lowsBloomberg Terminal Tuesday, a day after central bank minutes showed policy makers debated easing monetary policy during their May 9 meeting.