Brazil and Chile: Latin America Bond and Local Currency Preview

By Andrea Jaramillo
May 26 (Bloomberg) -- The following events and economic reports may influence trading in Latin American local bonds and currencies. Bond yields and exchange rates are from the previous session.
Brazil: The current account deficit likely narrowed to $3.1 billion in April from $4.43 billion a month earlier, according to median estimate of six economists surveyed by Bloomberg News. The central bank is to release its report at 9:30 a.m. New York time.
The real fell 0.1 percent to 1.6593 per dollar.
The yield on the zero-coupon, real-denominated bond due in January 2010 rose 5 basis points, or 0.05 percentage point, to 14.45 percent, according to Banco Votorantim SA.
Chile: Energy shortages acted as a ``brake'' on the economy, contributing to the slowest growth in five years, Finance Minister Andres Velasco said. Chile's central bank on May 23 reported that the economy expanded 3 percent in the first three months of 2008, down from a 4 percent rise in the previous quarter and less than the 3.2 percent median estimate in a Bloomberg survey of 20 economists.
The peso rose 0.3 percent to 470.75 per dollar.
The yield on Chile's 6 percent bonds due in March 2017 fell 1 basis point to 7.39 percent, according to Chile's Commerce Exchange.