Brazil, Mexico: Latin America Local Bond and Currency Preview

By Valerie Rota

Aug. 27 (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 the previous session.

Brazil: The IGP-M price index, the country's broadest measure of consumer, construction and wholesale prices, fell 0.2 percent in August after rising 1.76 percent in July, according to the median forecast of 28 economists surveyed by Bloomberg.

The Getulio Vargas Foundation is slated to publish the price report at 7 a.m. New York time.

The real rose 0.1 percent to 1.6288 per dollar.

The yield on the country's zero-coupon bonds due January 2010 fell 5 basis points, or 0.05 percentage point, to 14.79 percent, according to Banco Votorantim SA.

Mexico: The economy expanded 7.8 percent in the second quarter after growing 9 percent in the first quarter, according to the median estimate of seven economists surveyed by Bloomberg.

The national statistics agency is slated to release the report at 3:30 p.m. New York time.

The peso fell 0.2 percent to 10.1582 per dollar.

The yield on Mexico's benchmark 10 percent bonds due December 2024 rose 4 basis points to 8.59 percent, according to Banco Santander SA.

To contact the reporter on this story: Valerie Rota in Mexico City at vrota1@bloomberg.net.