EMERGING MARKETS-Brazil rate futures up as cenbank sees higher inflation

martes 23 de diciembre de 2014 08:28 GYT
 

SAO PAULO, Dec 23 (Reuters) - Yields paid on short-dated
contracts for Brazilian interest-rate futures rose on Tuesday
after the central bank raised its inflation forecast for next
year, suggesting monetary policy will have to be tighter to curb
the pace of price gains.
    Meanwhile, most Latin American currencies edged higher
before the release of key U.S. economic data including
third-quarter economic growth. Trading volumes were thin before
the Christmas holiday.
    Brazil's central bank forecast that inflation will hit 6.1
percent in 2015, up from its previous estimate of 5.8 percent
and dangerously close to the ceiling of an official target
range.
    The new estimate drove traders to increase bets that
policymakers will continue to raise the benchmark Selic rate at
an aggressive pace of 0.5 percentage point in January.
 
    Long-dated interest rates fell on hopes that a tight
monetary policy next year will make room for lower rates in the
future.
    Yields paid on interest-rate contracts maturing in January
2016 rose 3 basis points while those expiring in
January 2023 dropped 5 basis points.

    Key Latin American stock indexes and currencies at 1225 GMT:
    
 Stock indexes                   daily %    YTD %
                                  change   change
                      Latest              
 MSCI Emerging           952.94    -0.48     -4.5
 Markets                                  
 MSCI LatAm             2727.15     -0.2   -14.62
                                          
 Brazil Bovespa         50199.8     0.16    -2.54
                                          
 Mexico IPC                   0        0  -100.00
                                          
 Chile IPSA             3798.88     0.01     2.69
                                          
 Chile IGPA            18644.42     0.01     2.29
                                          
 Colombia IGBC         11712.85        0   -10.39
                                          
                                                 
 Currencies                      daily %    YTD %
                                  change   change
                         Latest           
 Brazil real             2.6579     0.08   -11.33
                                          
 Mexico peso            14.6435     0.15   -11.02
                                          
 Chile peso                 609     0.08   -13.61
                                          
 Colombia peso             2330    -0.13   -17.08
                                          
 Peru sol                  2.97     0.00    -5.96
                                          
 
    

 (Reporting by Walter Brandimarte Editing by W Simon)