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Chilean Assets Soar On Pension Withdrawal Bill Rejection

CHILE
  • The latest senate rejection of the fourth pension withdrawal bill has prompted an extension of the recent rally in the Camara curve.
  • Bull flattening in the US yield curve has contributed to lower latam swaps curve on Tuesday, however, domestic tailwinds have accentuated the shift lower for Camara swap rates.
  • Front-end swap rates have fallen between 22-27 basis points with the belly and long end seen down 32bps.
  • The Chilean IPSA stock index jumped on the news and is currently up well over 2% in the face of lower global benchmark indices.
  • Due tomorrow will be the BCCh Economist Survey, concluding the domestic calendar for the week.
    • USDCLP down 1.32% at 791.97
    • Chile IPSA Index up 102.28 points (2.34%) at 4465.61
  • Chile Camara Swaps:
    • 1-yr -22 bps at 4.91%
    • 2-yr -27 bps at 4.81%
    • 5-yr -32 bps at 5.00%
    • 10-yr -32 bps at 5.25%
    • 30-yr -31 bps at 5.68

MNI/Bloomberg

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