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Chile To Sell $3.2B in Local Bonds

CHILE
  • On Monday, Oxford Economics released a note indicating they believe the Chilean Peso’s rally will prove to be short-lived. A senior economist predicts the Chilean peso will likely weaken to 840/USD by the end of the year on frail fundamentals, according to a note.
    • Oxford Economics predict that growth in China, Chile’s top trading partner, will be significantly weaker than expected in both the short- and long-run.
    • Furthermore, the ongoing debate surrounding the new attempt at rewriting Chile’s constitution to keep political uncertainty high for two years.
    • The note also points out that Chile’s central bank are to announce key rate cuts as soon as May.
  • Today, Chile’s Treasury will sell $1.57 billion in bills in local currency due later this year and $1.63 billion in bills due in 2024.
  • PPI data on Friday is the only data point on the local docket this week.

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