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COLOMBIA: COP Recovers, New 2046 Peso Bond on Offer

COLOMBIA
  • The strong performance for high beta LatAm FX on Tuesday alongside the marginally higher-than-expected CPI data for June contributed to a solid move lower for USDCOP. This momentum has continued at the open and the pair has dipped back below 4,000, a four week low.
  • The Finance Ministry are scheduled to issue a new TES to mature in 2046 on Wednesday. It will be the only fixed rate bond that the Nation will offer in the two auctions in pesos in July, and from August it will be offered together with the notes that expire in 2036 and 2050.
  • Separately, President Petro said that he will propose a financing law and economic recovery plan to Congress after his administration was forced to cut the budget due to overestimation of tax revenues. Petro said the decision comes after a Colombian court “destroyed” a tax reform proposal that guaranteed tax revenues, in a post on Tuesday. (BBG)
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  • The strong performance for high beta LatAm FX on Tuesday alongside the marginally higher-than-expected CPI data for June contributed to a solid move lower for USDCOP. This momentum has continued at the open and the pair has dipped back below 4,000, a four week low.
  • The Finance Ministry are scheduled to issue a new TES to mature in 2046 on Wednesday. It will be the only fixed rate bond that the Nation will offer in the two auctions in pesos in July, and from August it will be offered together with the notes that expire in 2036 and 2050.
  • Separately, President Petro said that he will propose a financing law and economic recovery plan to Congress after his administration was forced to cut the budget due to overestimation of tax revenues. Petro said the decision comes after a Colombian court “destroyed” a tax reform proposal that guaranteed tax revenues, in a post on Tuesday. (BBG)