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CLP Rises 1.4%, Chile Camara Curve Shifts Higher

CHILE
  • Chile's CB President Marcel:
    • There Will Be Greater Economic Opening In 2h
    • Energy prices to drive temporary CPI rise
    • Covid pandemic causing oscillations in CPI (bbg)
  • The Chilean Peso also enjoying a 1.4% rally today, not only reflecting current regional sentiment but also as markets digest what is generally believed to be a hawkish tweak in the Central Bank's language. This opening for a potentially sooner than anticipated lift-off, should the economic recovery manifest, also represented by a small shift higher in the Camara curve, despite Peso strength and other regional curves moving lower:
  • Chile Camara Swaps:
    • 1-yr +3 bps at 0.775%
    • 2-yr +6 bps at 1.45%
    • 5-yr +6 bps at 2.52%
    • 10-yr +3 bps at 3.42%

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