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

By Jamie McGee

Aug. 5 (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: Inflation, as measured by the Foundation Economics Research Institute, slowed to 0.5 percent in July from 0.96 percent in June, according to the median estimate of 16 economists in a Bloomberg survey.

The institute is scheduled to release the data at 4 a.m. New York time.

The real fell 0.1 percent to 1.5619 per dollar.

The yield on the country's zero-coupon bonds due January 2010 rose 3 basis points, 0.03 percentage point, to 14.81 percent, according to Banco Votorantim SA.

Chile: Consumer prices rose 9 percent in the 12 months through July, compared with a 9.5 percent increase in the year through June, according to the median estimate of 12 economists in a Bloomberg survey.

The economy grew 3.1 percent in June from a year earlier, compared with a 2.1 percent increase in May, according to the median estimate of 15 economists in a Bloomberg survey.

The National Institute of Statistics is scheduled to release the consumer price data at 8 a.m. New York time, and the central bank will release the output data at 8:30 a.m. New York time.

The peso weakened 1 percent to 510.70 per dollar from 505.5.

The yield for a basket of five-year peso bonds in inflation- linked currency units fell 5 basis points to 2.89 percent, according to Bloomberg composite prices.

Mexico: The consumer confidence index likely fell to 89.9 percent in July from a six-year low of 90.7 percent in June, according to the median estimate of 10 economists in a Bloomberg survey.

The national statistics agency is scheduled to release the data at 3:30 p a.m. New York time.

The peso rose 0.8 percent to 9.8581 per dollar.

The yield on Mexico's benchmark 10 percent bonds due December 2024 fell 14 basis points to 8.87 percent, according to Banco Santander SA.

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