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

By Jamie McGee

Aug. 22 (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 government's IPCA-15 index, slowed to 0.38 percent in the 30-day period through Aug. 15 from 0.63 in the previous 30-day period, according to the median estimate of 35 economists in a Bloomberg survey.

The government's statistics agency is scheduled to release the data at 8 a.m. New York time.

The real rose 0.6 percent to 1.6090 per dollar.

The yield on the country's zero-coupon bonds due January 2010 rose 4 basis points, or 0.04 percentage point, to 14.74 percent, according to Banco Votorantim SA.

Mexico: Consumer prices rose 0.26 percent in the first half of August, compared with a 0.38 increase in the first half of July, according to the median estimate of 18 economists in a Bloomberg survey.

The central bank is scheduled to release the data at 10 a.m. New York time.

The peso rose 0.5 percent to 10.0931 per dollar.

The yield on Mexico's benchmark 10 percent bonds due December 2024 was unchanged at 8.56 percent, according to Banco Santander SA.

Peru: Inflation will slow over the next 18 months as international commodity prices fall and the government curbs spending, Finance Minister Luis Valdivieso said.

The government won't take ``traumatic'' anti-inflation measures so as not to hurt economic growth, Valdivieso said yesterday in a presentation to Congress. Inflation will slow to 3.5 percent in 2008 from about 5.8 percent this year, he said.

``With moderation in public works, inflation should converge within the central bank's target,'' Valdivieso said in his first presentation since taking office on July 14.

The sol rose 0.3 percent to 2.9100 per U.S. dollar.

The yield on the nation's 8.6 percent sol-denominated bonds due in August 2017 rose 5 basis points to 7.98 percent, according to Citigroup Inc.'s unit in Peru.

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