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Rates Summary - TIIE Curve Flattening, Pressure On Colombia Front-End

LATAM
  • Latam Swap rates – Flattening move in TIIE curve, with further pressure in the front end after Banxico's surprise hike yesterday. Notable move in Colombia IBR Swaps with the front end rising roughly 20 basis points. For reference on Monday, BanRep will release their interest rate decision and release their latest statement. The central bank is widely expected to hold the benchmark interest rate at 1.75%, confirmed by all analysts surveyed by Bloomberg. In its April meeting, the central bank held its rate at 1.75% in a split decision. Six of the seven board members voted for no change, and one voted for a 25-basis-point reduction.
  • Mexico TIIE Swaps:
    • 1-yr +11 bps at 5.68%
    • 2-yr +11 bps at 6.30%
    • 5-yr -3 bps at 6.85%
    • 10-yr -6 bps at 7.14%
    • 32-yr -14 bps at 7.75%
  • Colombia IBR Swaps:
    • 1-yr +21 bps at 3.14%
    • 2-yr +19 bps at 3.98%
    • 5-yr +4 bps at 5.03%
    • 10-yr +10 bps at 5.95%

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