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Colombian peso bonds soared to a two-week high Thursday following favorable inflation predictions from the central bank, reports Bloomberg.
The government’s official inflation report will be released on May 5, but figures from the last six weeks suggest inflation is below the bank’s target, while a record-low interest rate of 3.5% is providing stimulus.
“The economy is recovering and we shouldn’t see inflation pressures rise until the second half of the year…[which] continues to boost appetite for bonds,” said Jairo Lastra, an analyst at Bogota brokerage firm, Proyectar Valores SA.
The yield on Colombia’s peso bond fell by 0.14% to 8.31% on Thursday to its lowest level in nearly two weeks.
