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

By Andrea Jaramillo
April 23 (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: Industrial output climbed 6.1 percent in March from a year earlier, compared to 5.8 percent the previous month, according to the median forecast of seven economists surveyed by Bloomberg News. The National Statistics Institute is set to release the monthly report at 3 p.m. New York time.
The peso fell 0.1 percent to 3.1816 per dollar.
The yield on the government's 5.83 percent inflation-linked peso bonds due in December 2033 rose 21 basis points to 10.1 percent, according to Citigroup Inc.'s unit in Argentina.
Brazil: The government may sell as much as $500 million of its bonds maturing in 2017 as part of a plan to build benchmark securities that are large enough for international investors to trade, Deputy Treasury Secretary Paulo Valle said. Brazil is seeking to reduce borrowing costs by boosting the size of its 6 percent 2017 bond issue from $2 billion and using the proceeds to repay more expensive debt, Valle said in an interview in London yesterday.
The real strengthened 0.2 percent to 1.6602 per dollar.
The yield on the zero-coupon, real-denominated bond due in January 2010 rose 23 basis points to 13.8 percent, according to Banco Bradesco SA.
Mexico: The trade deficit narrowed in March to $1.3 billion, compared with $2 billion a month earlier, according to the median forecast of 11 economists surveyed by Bloomberg. The finance ministry is set to release trade figures at 3:30 p.m. New York time.
The peso rose 0.5 percent to 10.4828 per dollar.
The yield on Mexico's 10 percent bond due December 2024 fell 1 basis point to 7.78 percent, according to Banco Santander SA.
Peru: The Finance Ministry will offer to sell as much as 400 million soles ($143 million) worth of its 2031 sol bond in an auction today, the government said in the state gazette.
The sol dropped 0.5 percent to 2.809 per dollar.
The yield on Peru's 8.6 percent bond maturing August 2017 was little changed at 6.38 percent, according to Bloomberg prices.
Venezuela: The government will sell $3 billion of dollar bonds at a price of 115 percent of the securities' face value, the Finance Ministry said yesterday in a statement. The ministry announced April 21 it would sell $1.5 billion in 9 percent bonds due in 2023 and $1.5 billion in 9.25 percent bonds due in 2028. Deutsche Bank and Barclays Capital are managing the sale, which is scheduled to be completed on May 7.