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IBR Swap Rates Fall Following Dovish Hike, COP Underperforming

COLOMBIA
  • BanRep’s 100BP Hike on Thursday was below market consensus and as such, IBR swap rates have fallen at the open. The IBR swaps curve has bull steepened from its inverted state with 1 and 2-year swap rates falling over 50 basis points.
  • In turn, the Colombian peso has fallen 0.5%. While not a huge move of itself, the relative underperformance compared to Latam counterparts on Friday is notable.
  • USDMXN and USDBRL both continuing to plumb new lows for the year.
    • USDMXN down 0.45% at 19.783
    • USDBRL down 0.84% at 4.7038
    • USDCLP down 0.32% at 783.63
    • USDCOP up 0.45% at 3788.01
  • *Colombia IBR Swaps:
    • 1-yr -57 bps at 7.83%
    • 2-yr -50.5 bps at 7.86%
    • 5-yr -33 bps at 7.7%
    • 10-yr -15 bps at 7.6%

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