Bonds News

EMERGING MARKETS-Mexican peso up on data, Colombia's flat after hold on rates

    * Latam FX index set for worst week in over one month
    * Colombian central bank holds benchmark rate steady
    * Brazil's real rises after central bank FX intervention 

 (Updates prices throughout; adds bullets, comments)
    By Shreyashi Sanyal
    Oct 30 (Reuters) - Mexico's peso rose on Friday, set to end
a tumultuous week on a positive note after data signaled a
strong economic rebound, while the Colombian currency traded in
a tight range after the country's central bank kept interest
rates unchanged.     
    The peso rose 0.7% against the dollar after
preliminary data showed Mexico's economy grew 12.0% in the third
quarter, making up for much of the contraction in the previous
three months at the height of the coronavirus lockdown.

    U.S. demand helped Mexico rack up large trade surpluses
during the past four months, as exports picked up speed. By
contrast, domestic demand has lagged, with many businesses still
    A gauge for Latin American currencies rose
0.5%, gaining after three straight days of declines, but was
still set for its worst weekly fall in over a month. 
    Most emerging market currencies have come under pressure
from a strengthening dollar in the face of rising coronavirus
cases and uncertainty over the outcome of next week's U.S.
presidential election. 
    Colombia's peso was flat after the central bank left
its benchmark interest rate unchanged at 1.75% as expected, the
first hold after seven months of cuts that took borrowing costs
to a historic low.     
    Mexico's and Colombia's pesos have been pressured recently
by a slide in oil prices. 
    The Brazilian real rose 0.3%, after the
country's central bank intervened in the foreign exchange market
on Friday, selling dollars to ease heavy downward pressure on
the currency that had pushed it closer to its all-time low
against the dollar struck earlier this year.
    Brazil's real shed 2.2% this week, the most among its Latin
American peers on general risk aversion and worries about the
countries public finances. 
    "There are idiosyncratic factors that make BRL more
susceptible than other EM currencies," wrote You-Na Park-Heger
FX and emerging market analyst at Commerzbank.  
    "First of all, there is the high budget deficit and the lack
of progress with the fiscal reforms. And secondly the
historically low key rates are also putting pressure on BRL."
    The Chilean peso was flat against the dollar. Chile's
central bank unanimously opted to keep interest rates at a
baseline low this month, agreeing that while the worst of the
COVID-19 pandemic was "now behind us" there were fresh risks in
the medium term, according to minutes released on Friday.

    Key Latin American stock indexes and currencies at 1900 GMT:
          Stock indexes                   Latest   Daily %
 MSCI Emerging Markets                    1102.12    -1.61
 MSCI LatAm                               1808.01    -1.37
 Brazil Bovespa                          94028.08    -2.64
 Mexico IPC                              36866.06     0.18
 Chile IPSA                               3549.27    -0.93
 Argentina MerVal                        44988.08    0.164
 Colombia COLCAP                          1146.00      1.3
              Currencies                  Latest   Daily %
 Brazil real                               5.7462     0.29
 Mexico peso                              21.2480     0.65
 Chile peso                                 773.5    -0.12
 Colombia peso                            3868.85    -0.24
 Peru sol                                  3.6148    -0.11
 Argentina peso (interbank)               78.3200    -0.03
 Argentina peso (parallel)                    165     6.06
 (Reporting by Shreyashi Sanyal in Bengaluru; editing by Emelia
Sithole-Matarise and Tom Brown)