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Local Assets Under Renewed Pressure Following Rating Downgrade

COLOMBIA
  • The Colombian Peso has come under renewed pressure with USDCOP bouncing off the 50 and 200day- moving averages support that intersect around 3660. Additionally the IBR swap curve is under pressure with swap rates rising by between 7-10 bps, following the rating downgrade by S&P.
  • USDCOP up 0.64% at 3696
  • Colombia IBR Swaps:
    • 1-yr +7 bps at 2.54%
    • 2-yr +9 bps at 3.47%
    • 5-yr +10 bps at 4.94%
    • 10-yr +10 bps at 6%
  • The chart below also shows the trend in 10-year dollar bond yields as well as the rising 5-year CDS spread since the start of the year.

Source: Bloomberg

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