Argentina, Brazil, Mexico: Latin America Currencies Preview

By Alex Lange
Feb. 20 (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.
Argentina: The economy probably expanded 9.6 percent in December from a year earlier, according to the median forecast in a Bloomberg survey, the same as in the previous month. The National Institute of Statistics reports the data at 1 p.m. New York time.
The peso was little changed at 3.1537 per dollar.
The yield on the 5.83 percent inflation-linked bonds due in December 2033 fell 1 basis point, or 0.01 percentage point, to 8.459 percent, according to Citibank Argentina.
Brazil: Inflation grew 0.5 percent in the month that ended Feb. 19, slowing after a 0.9 percent rise in the prior period, according to the median forecast in a Bloomberg survey. The Getulio Vargas Foundation report is scheduled to be released at 6 a.m. New York time.
The real rose 0.18 percent to 1.7322 per dollar.
The yield on the zero-coupon, real-denominated bond due in January 2009 rose 7 basis points, or 0.07 percentage point, to 11.805 percent, according to Banco Votorantim SA.
Mexico: The government plans to exchange 11.9 billion pesos of its inflation-linked bonds due in 2025 today for inflation- linked securities maturing in 2035. The swap is part of the Mexico's effort to extend maturities and boost trading in its longer-term securities.
The unemployment rate likely grew 3.8 percent in January, up from 3.4 percent in the previous month, according to the median forecast of 15 economists surveyed by Bloomberg. The National Institute of Statistics will release the data at 3:30 p.m. New York time.
The peso fell 0.25 percent to 10.7631 per dollar.
The yield on Mexico's 10 percent bonds due in December 2024 rose 4 basis points, or 0.04 percentage point, to 7.640 percent, according to Banco Santander SA.