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

By Drew Benson

Sept. 26 (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 day's session.

Brazil: Finance Minister Guido Mantega said yesterday that the proposed U.S. $700 billion bank rescue package won't be enough to end the global financial crisis. ``It won't end the crisis, but perhaps help us get through the toughest part,'' Mantega told reporters in Rio de Janeiro.

The real gained 2.1 percent to 1.8206 per dollar.

The yield on the zero-coupon, real-denominated bond due in January 2010 fell 10 basis points, or 0.1 percentage point, to 14.79 percent, according to Banco Votorantim.

Mexico: The government said it plans to increase sales of 30-year peso-denominated bonds in the fourth quarter.

The Finance Ministry said it plans to auction 9.3 billion pesos ($865 million) of 30-year securities, compared with 8 billion pesos in the third quarter.

The peso gained 1.3 percent to 10.7125 per dollar.

The yield on Mexico's 10 percent bonds due December 2024 declined 12 basis points to 8.43 percent, according to Banco Santander SA.

Argentina: The trade surplus widened to $1.09 billion in August from $1 billion in July, according to the median forecast of eight economists in a Bloomberg News survey. The National Statistics Agency is scheduled to release the data at 3 p.m. New York time.

The peso fell 0.2 percent to 3.1132 per dollar yesterday.

The yield on Argentina's inflation-linked peso bonds due in December 2033 declined 2 basis points, or 0.02 percentage point, to 10.56 percent, according to Citigroup Inc.'s local unit.

To contact the reporter on this story: Drew Benson in Buenos Aires at Abenson9@bloomberg.net.