Colombia’s peso bonds rose, pushing yields to fall the most in more than a week, on speculation declining food prices caused inflation to slow in August.
The yield on the country’s 10 percent bonds due in July 2.024 fell five basis points, or 0.05 percentage point, to 7.35 percent at 1:58 p.m. New York time.
That’s its biggest decline since Aug. 22.
The price rose 0.494 centavo to 121.603 centavos per peso.
Inflation is likely to continue slowing from its current 3.42 percent annual rate, Colombia’s Central Bank chief Jose Dario Uribe said yesterday.
Banco de la Republica targets 2.011 inflation between 2 percent and 4 percent.
“People have been cutting their inflation expectations based on wholesale prices that show food prices fell in August,” said Daniel Velandia, head analyst at Bogotá based brokerage Correval SA. “Uribe’s comments also helped ease concern some have had over future inflation readings.”
Correval now expects consumer prices to increase 0.09 percent this month, compared to a previous forecast of 0.15 percent, and annual inflation to end this year at 3.4 percent.
The median forecast of 16 economists is for consumer prices to rise 0.13 percent in August from the previous month, after rising 0.14 percent in July.
The national statistics agency is slated to publish its monthly inflation report Sept. 5.
Colombia’s peso weakened 0.1 percent to 1,779.20 per dollar, from 1,778.02 yesterday.
The peso is up 7.7 percent in the past six months, the best performance among 25 emerging- market currencies.
The yield on the country’s 10 percent bonds due in July 2.024 fell five basis points, or 0.05 percentage point, to 7.35 percent at 1:58 p.m. New York time.
That’s its biggest decline since Aug. 22.
The price rose 0.494 centavo to 121.603 centavos per peso.
Inflation is likely to continue slowing from its current 3.42 percent annual rate, Colombia’s Central Bank chief Jose Dario Uribe said yesterday.
Banco de la Republica targets 2.011 inflation between 2 percent and 4 percent.
“People have been cutting their inflation expectations based on wholesale prices that show food prices fell in August,” said Daniel Velandia, head analyst at Bogotá based brokerage Correval SA. “Uribe’s comments also helped ease concern some have had over future inflation readings.”
Correval now expects consumer prices to increase 0.09 percent this month, compared to a previous forecast of 0.15 percent, and annual inflation to end this year at 3.4 percent.
The median forecast of 16 economists is for consumer prices to rise 0.13 percent in August from the previous month, after rising 0.14 percent in July.
The national statistics agency is slated to publish its monthly inflation report Sept. 5.
Colombia’s peso weakened 0.1 percent to 1,779.20 per dollar, from 1,778.02 yesterday.
The peso is up 7.7 percent in the past six months, the best performance among 25 emerging- market currencies.
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