Argentina, Brazil, Mexico: Latin America Bond, Currency Preview

By Jamie McGee

July 23 (Bloomberg) -- The following events and economic reports may influence trading in Latin American local bonds and currencies today. Bond yields and exchange rates are from a previous session.

Argentina: Industrial production increased 5.3 percent in June from the same period a year ago, compared with a 6.9 percent increase in May, according to the median estimate of 10 economists in a Bloomberg survey.

The National Institute of Statistics is scheduled to release the data at 3 p.m. New York time.

The peso rose 0.1 percent to 3.0212 per dollar.

The yield on the country's inflation-linked peso bonds due in December 2033 fell 20 basis points, or 0.2 percentage point, to 9.47 percent, according to Citigroup Inc.'s unit in Argentina.

Brazil: Central bankers will raise the overnight lending rate to 12.75 percent from 12.25 percent, according to 30 of 44 economists in a Bloomberg survey. The other 14 economists forecast the bank will raise the rate to 13 percent.

The Bank of Brazil is scheduled to release the report at 5 p.m. New York time.

The real rose 0.1 percent to 1.5792 per dollar.

The yield on the country's zero-coupon bonds due January 2010 fell 10 basis points, or 0.1 percentage point, to 14.95 percent, according to Banco Votorantim.

Mexico: Petroleos Mexicanos, struggling as oil production declines, may drill for crude outside Mexico for the first time unless lawmakers approve hiring foreign partners for domestic offshore projects.

Chief Executive Officer Jesus Reyes Heroles said the company, known as Pemex, may court partners on the U.S. side of the Gulf of Mexico, off the coast of Cuba and in Latin America unless Congress adopts oil reforms proposed by President Felipe Calderon.

The peso rose 0.9 percent to 10.0365 per dollar.

The yield on Mexico's benchmark 10 percent bonds due December 2024 fell 16 basis points to 9.073 percent, according to Banco Santander SA.

To contact the reporter on this story: Jamie McGee in New York at jmcgee8@bloomberg.net