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Local Asset Prices Moderate After Monday Surge

CHILE
  • USDCLP has opened in line with yesterday's close around 810 and price action is very subdued following the volatile Monday post-elections.
  • The Camara curve aggressively bull flattened yesterday, with long end swap rates falling around 45 basis points. The move has been tempered today with some bear steepening partially offsetting yesterday's shift (shown below).
  • The IPSA index is also marginally in the red today but remains around 8% higher from Friday's close.
    • PPI is the only local data point this week and so further digestion of the political developments will remain the focus for markets ahead of the December runoff between Kast and Boric.
  • Local News: A mixed commission of senators and deputies will begin voting on the fourth withdrawal of pension funds Wednesday at 1pm, commission president Pedro Araya said.
    • If they do not get to vote all the indications, they would end in an additional session, said Araya. After this, the bill will be voted again at the Senate and Lower House. (BBG)

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