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EMERGING MARKETS-Venezuela bonds tank; Mexico peso takes a breather
March 31, 2017 / 10:24 PM / 7 months ago

EMERGING MARKETS-Venezuela bonds tank; Mexico peso takes a breather

 (Recasts with Venezuela bonds, update prices)
    March 31 (Reuters) - Venezuelan government bonds prices sank
on Friday as tensions rose following the annulment of the
country's legislature by the country's high court this week
while the Mexican peso pulled back after a recent rally. 
    The price on Venezuela's benchmark $4 billion bond maturing
in September 2027 with a 9.25 percent coupon bid down $3.42,
driving its yield up by 1.5 percentage points to its highest
since last August, at nearly 23 percent.
    The move by the country's high court late Wednesday was met
with international condemnation and street protests, and on
Friday the fallout intensified when Venezuela's attorney general
broke ranks with President Nicolas Maduro and rebuked the
judiciary for its move.
    Mexico's peso weakened about 0.5 percent after the nation's
central bank slowed the pace of interest rate hikes, raising its
benchmark rate by a quarter percentage-point to 6.50 percent,
following four straight 50-basis-point hikes.
    The move followed a 10 percent increase in the value of the
peso so far this year, which helped ease inflationary pressures.
    Bets that U.S. President Donald Trump will not impose big
tariffs on Mexican exports to the United States lifted the
currency from a slump last year - its steepest since 2008.
    Lower iron ore prices dragged on demand for Brazilian
assets, with shares of miner Vale SA falling more
than 1 percent.
    Losses were limited by rising shares of wood pulp and paper
producers, such as Fibria Celulose SA and Klabin SA
, on hopes that a rebound in pulp prices would
continue in coming months.
    
    Key Latin American stock indexes and currencies at 2200 GMT:
      
 Stock indexes                 Latest      Daily     YTD pct
                                            pct       change
                                           change   
 MSCI Emerging Markets            958.37     -1.14       11.14
                                                    
 MSCI LatAm                     2,611.10     -1.78       11.55
 Brazil Bovespa                64,984.07     -0.43        7.90
 Mexico IPC                    48,541.56     -0.66        6.35
 Chile IPSA                     4,783.42     -0.74       15.22
 Chile IGPA                    23,967.87     -0.64       15.60
 Argentina MerVal              20,265.32      0.08       19.79
 Colombia IGBC                 10,150.68     -0.38        0.22
 Venezuela IBC                 43,876.70       0.6       38.39
                                                              
 Currencies                    Latest      Daily     YTD pct
                                            pct       change
                                           change   
 Brazil real                      3.1296      0.40        3.40
 Mexico peso                     18.8200     -0.48       10.22
 Chile peso                        660.2      0.42        1.59
 Colombia peso                  2,873.98     -0.03        4.44
 Peru sol                          3.248     -0.03        5.11
 Argentina peso (interbank)      15.3800      0.20        3.22
                                                    
 Argentina peso (parallel)         15.93     -0.25        5.59
                                                    
 

 (Reporting by Michael O'Boyle and Bruno Federowski; Editing by
Lisa Shumaker)
  

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