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

By Jamie McGee
June 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 a previous session.
Brazil: The country's 2009 inflation expectations are ``well anchored,'' central bank director Mario Gomes Toros said at a conference yesterday in New York.
``Although we've seen a deterioration in current inflation numbers, the inflation forecasts for 2009 show that inflation expectations in the medium term are reasonably well anchored,'' Toros said.
The real strengthened 0.2 percent to 1.6030 per dollar.
The yield on the country's zero-coupon bond due 2010 fell 2 basis points to 14.77 percent, according to Banco Bradesco SA.
Colombia: The country's foreign credit rating was raised to within one level of investment grade by Moody's Investors Service as the fastest economic expansion in three decades lures capital and narrows the budget deficit.
Moody's raised the rating yesterday to Ba1 from Ba2, putting Colombia on the verge of regaining the investment-grade rating it lost in 1999. Moody's said the outlook on Colombia's rating is stable.
The central bank will leave the benchmark lending rate at 9.75 percent at a policy meeting today, according to the median estimate of 20 economists in a Bloomberg survey.
The peso fell 0.5 percent to 1677 per U.S. dollar, according to the Colombian foreign-exchange electronic transactions system, known as SET-FX.
The yield on Colombia's benchmark 11 percent bond due July 2020 rose 8 basis points to 12.12 percent, according to Colombia's stock exchange.
Mexico: The central bank will leave the overnight lending rate at 7.5 percent, according to the median estimate of 24 economists in a Bloomberg survey.
The central bank is slated to announce its rate decision at 10 a.m. New York time today.
The peso was little changed at 10.3070 per dollar.
The yield on Mexico's benchmark 10 percent bonds due December 2024 rose 8 basis point to 8.95 percent, according to Banco Santander SA.