Brazil, Chile, Peru: Latin American Currency, Bond Preview

By Drew Benson

Oct. 2 (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: Industrial production rose 2.5 percent in August from the year-earlier period after increasing 8.5 percent in July, according to the median forecast of 26 economists in a Bloomberg News survey. The National Statistics Agency is scheduled to release the report at 8 a.m. New York time.

The real dropped 0.7 percent to 1.9176 per dollar.

The yield on the zero-coupon, real-denominated bond due in January 2010 fell 5 basis points to 14.49 percent.

Chile: The central bank is scheduled to release minutes from last month's monetary policy meeting at 8:30 a.m. New York time.

The peso dropped 1.3 percent to 559.45 per dollar from 552.11 yesterday.

The yield for a basket of Chile's five-year peso bonds in inflation-linked currency units, known as unidades de fomento, fell 9 basis points, or 0.09 percentage point, to 3.09 percent, according to Bloomberg composite prices.

Peru: Inflation slowed less than expected in September as transportation costs surged. Consumer prices rose 0.57 percent after increasing 0.59 percent in August, the National Statistics Agency said after market close yesterday. Prices rose more than the 0.47 percent median forecast in a Bloomberg survey of 14 economists. The 12-month inflation rate fell to 6.22 percent from 6.27 percent.

The sol rose 0.4 percent to 2.9701 per dollar, from 2.9825 yesterday.

The yield on Peru's benchmark 8.6 percent sol-denominated bond due in August 2017 rose 12 basis points to 8.62 percent, according to the local unit of Citigroup Inc.

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