Brazil and Chile: Latin America Bond and Currency Preview

By Jamie McGee

Aug. 14 (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.

Brazil: Retail sales rose 9.8 percent in the year through June, compared with a 10.5 percent increase in May, according to the median forecast of 30 economists in a Bloomberg survey.

The Instituto Brasileiro de Geografia e Estatistica (IBGE) is scheduled to release the data at 8 a.m. New York time.

The real rose 0.7 percent to 1.6115 per dollar.

The yield on the country's zero-coupon bonds due in January 2010 rose 1 basis point, or 0.01 percentage point, to 14.82 percent, according to Banco Votorantim SA.

Chile: The central bank will likely raise its overnight lending rate to 7.75 percent from 7.25 percent, according to the median forecast of 30 economists surveyed by Bloomberg News.

The central bank is scheduled to announce the rate at 6 p.m. New York time.

The peso strengthened 0.7 percent to 515.75 per dollar.

The yield for a basket of five-year peso bonds in inflation-linked currency units fell 6 basis points to 3.01 percent, according to Bloomberg composite prices.

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