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Finance Ministry To Launch Debt Buyback Program Today

CHILE
  • The Chilean peso outperformed yesterday, gaining by 1.65% against the dollar, supported by a 1.7% rally in copper prices. Analysts also note that the MXN sell-off may have helped as long MXN positions were unwound, some of which may have used the CLP as a funding currency. A bear trend in USDCLP, which closed at 903 yesterday, remains intact and recent bearish price action reinforces current conditions. Attention is on 886.96 next, the 76.4% retracement of the Dec 1 ‘23 - Feb 26 bull leg, a clear break of which would open 870.45, the Dec 29 low.
  • Today, the Finance Ministry will start a debt buyback program for investors who want to exchange debt that has already been emitted for new bonds to be issued. The program is voluntary and the aim is to manage the maturity of debt over the coming years and to offer new benchmark bonds to support market liquidity.
  • On the data front, May IMCE business confidence could be published later today, ahead of May CPI data on Friday, which remains the main focus of this week.

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