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Forex - Latam Summary and Highlights for Mar 10


 23:13 (GMT) 10 Mar

  [Forex Highlights]

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Latam Summary and Highlights for Mar 10 (IDCB2001)

LATAM IN THE FLOW FOR March 10

ARGENTINA -

* ARS rose 0.04% to 3.8588.

* MERVAL rose 0.56% to 2,332.22.

* BODEN 12s rose 0.21% to 349.75.

* GDP-linked bonds rose 0.20% to 25.30 (USD), +0.41% to 5.42 (ARS).

BRAZIL -

* Volatile day where BRL closed stronger by 0.4% at 1.7688, after weakening to 1.7815 in early trading.

* BCB intervened buying at 1.7714.

* Bovespa also recovered closing 0.58% higher at 69,979.51, still unable to hold above 70K.

* Jan 11 Di ended the day up 4bps to 10.46% with higher volume and spread to Jan 12 up to 112bps reflecting higher than expected IGP-M data (0.95%m/m) and some talk that BCB president Meirelles will leave his post at the end of the month.

* FX flows in first week of Mar went strongly negative despite expectations of flows for IPOs. Both financial (-US$908mn) and trade (-US$297mn) were negative. Nonetheless BCB bought US$797mn, more than double the Feb total. That would mean the banks position is flat now down from the US$2.1bn long USD at the end of Feb.

CHILE -

* CLP fell 1.24% to 518.65 on corporate demand.

* IPSA rose 0.57% to 3,813.98. 5y BCUs rose 7bps to 2.15%.

* Treasury paid higher yields at 10y Auction v. 17-Feb as 10y BTUs rose 9bps to 3.20% and 10y BTPs rose 10bps to 6.51%.

COLOMBIA -

* COP fell 0.25% to 1892.00.

* IGBC fell 0.13% to 11,836.31.

* Treasury paid mixed yields at COP$400bn L/T TES auction v. 24-Feb: Apr-13 (2y) rose 12bps to 7.24%, Jun-16 (6y) fell 1bp to 8.41% and Jul-24 (14y) fell 3bps to 9.19%; Demand was COP$1.15tn or 2.9x's offer.

MEXICO -

* MXN eased below 12.60. US$30mn in put options was exercised leaving US$226mn.

* FIX was set at 12.6028.

* Mexbolsa was flat at 32,505.76.

* Mbono 24 was down 1bps to 7.98%.

* 10y tiee swap rose 2bps to 7.99, 3m tiie 28d was up 1bps to 4.95%.

* Feb inflation came in the high end of expectations at 0.58%m/m, with core 0.4%m/m.

* The Mexican govt. is asking the IMF to renew the US$48bn FCL for one year.

* Feb negotiated wages rose 4.5%y/y just up from the 4.4%y/y reported in January. Real wages remains in the negative at -0.31%y/y from -0.02% in January.

* Feb car production rose 55.6%y/y supported by the 96.8%y/y increase in exports and constrained by the 3.3% fall in domestic sales.

PERU -

* PEN was up 0.05% to 2.8385, the stronger level in 18 months.

* BCRP did not intervene.

* IGBVL lost 0.36% to 14,346.8.

VENEZUELA -

* Parallel FX unchanged at 6.89 despite gains in global bonds.

* IBVC rose 0.71% to 57,463.66.

BONDS -

Mostly Robust Day for Latam Global Bonds:

* BRL-40 flat at 134.29. * COP-13 fell 0.16% to 121.50. * CLP-12 rose 0.01% to 109.21. * UMS-15 rose 0.18% to 113.34. * PEN-15 rose 0.04% to 126.80. * VEN-27 rallied 1.43% to 77.69.

COMMODITIES -

Mixed Day for Commodities:

* WTI oil rose 0.74% to US$82.09/bb. * Copper fell 1.00% to US$3.364/lb. * Gold lost 1.20% to US$1,108.41/oz


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