Peru Bond Yields Match 2013 High on European Concern; Sol Slips
This article is for subscribers only.
Peru’s bond yields rose to match their highest level this year as the election stalemate in Italy renewed concern about Europe’s ability to deal with its debt crisis, diminishing demand for higher-yielding assets.
“It’s external events and the volatility caused by the outcome of the Italian elections,” Felipe Hernandez, an economist at Royal Bank of Scotland Group Plc, said by phone from Stamford, Connecticut. “Foreign investors hold more than half of the total amount outstanding of the local bonds, so while those holdings have been resilient, they are more vulnerable to changes in global sentiment than others in the region.”