Bonds News

EMERGING MARKETS-Mexican peso up as inflation rises; other Latam FX, stocks gain

    * Mexican peso extends gains to fifth straight session
    * Mexican rates to fall more than most expect -analysts
    * Brazil' real up 0.1%; Chile's peso jumps 1%
    * Brazil's coronavirus spread appears to level off -WHO
    * Colombia unveils plan to boost foreign investment 

    By Susan Mathew
    Aug 24 (Reuters) - Latin American currencies rose on Monday,
with Mexico's peso extending gains to a fifth straight session,
as the dollar weakened ahead of major events this week and on
rising base metal prices.
    The greenback lost ground against major rivals ahead of the
Republican National Convention, at which U.S. President Donald
Trump will seek to reboot his election campaign. Eyes will also
be on Federal Reserve Chair Jerome Powell's address on Thursday
about the U.S. central bank's monetary policy framework review.

    Global sentiment, meanwhile, got a lift after the U.S. Food
and Drug Administration approved the use of blood plasma from
patients who have recovered from COVID-19 as a treatment option.
Main stock indexes in Latin America rose between 0.1% and 0.7%.
Argentina's Merval, however, lost 1.4%.
    Mexico's peso was up 0.1% after annual inflation in
the first half of August increased to 3.99%, above expectations,
to the upper end of the central bank's target range.

    The data "will probably prompt the central bank to slow the
pace of its easing cycle. But with inflation set to drop back
over the coming months, we still think interest rates will fall
by more than most expect this year," Capital Economics wrote in
a note.
    Brazil's real rose steadily from three-month lows.
The World Health Organization on Friday said the coronavirus
crisis appears to be leveling off, if not easing, in the world's
second biggest COVID-19 hot spot. Brazil had registered more
than 3.6 million cases as of Sunday.
    On Monday, Brazil's lower house speaker Rodrigo Maia said
the country's congress will focus on the government's spending
ceiling rule and tax and administrative reforms for the
remainder of this year, and expects other key economic reforms
to be passed next year. 
    The real has been facing increased pressure amid a slew of
ministerial resignations and worries about the country's fiscal
    Chile's currency led gains in the region, up 1%, as
copper prices rose, while the Colombian peso was flat.

    Colombia's government on Friday launched an effort to
attract $11.5 billion in non-energy related foreign investment
between now and 2022, in a bid to create jobs. The plan includes
tax incentives and bureaucratic simplifications.
    In Argentina, approval by creditors of its debt
restructuring offer is being eyed ahead of a Friday deadline.
Investors are now looking for macroeconomic reforms and
International Monetary Fund support to regain confidence.
    Key Latin American stock indexes and currencies at 1427 GMT:
  Stock indexes           Latest   Daily %
 MSCI Emerging Markets    1109.48     1.61
 MSCI LatAm               1970.88     0.97
 Brazil Bovespa         102252.67     0.72
 Mexico IPC              38214.43     0.31
 Chile IPSA               4000.01     0.13
 Argentina MerVal        46759.10   -1.376
 Colombia COLCAP          1193.07     0.57
      Currencies          Latest   Daily %
 Brazil real               5.6011     0.08
 Mexico peso              21.9280     0.15
 Chile peso                 786.3     0.92
 Colombia peso            3836.26    -0.08
 Peru sol                  3.5768     0.16
 Argentina peso           73.7200    -0.19
 (Reporting by Susan Mathew in Bengaluru
Editing by Paul Simao)