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Bill Proposed to Further Subsidise Electricity Costs

CHILE
  • Higher US yields on Monday prompted USDCLP to close up 0.66% around the 946 level, with rising copper prices perhaps limiting the upside to a degree. For USDCLP, initial support to watch is at 934.11, the 20-day EMA, while key support remains much lower at 908.75, the Jun 12 low. On the upside, attention is on 964.03, 76.4% of the bear leg between Apr 16 and May 20.
    • Data wise, IMCE business confidence may cross later. After that, focus turns to nominal wage data on Friday and June CPI next week, which will be key ahead of the next monetary policy meeting on July 31.
    • Late yesterday, it was announced that Chile will submit a new bill that will triple the coverage of the subsidy for vulnerable households to alleviate increases in electricity bills that will take effect this month, Energy Minister Diego Pardow told reporters in Santiago.
    • Separately, as noted earlier, Chile is launching a new July 2031 dated Euro Benchmark social bond. Initial price talk is in mid-swaps +130bps area, and the deal may price today. Full details here.

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