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Swaps Curve Bear Flattens, Diverges From Regional Counterparts

CHILE
  • Following the hawkish tweaks to the central bank statement, the Chilean peso trades roughly half a percent firmer against the dollar. The Camara swaps curve seen bear flatter, with front end swap rates rising by between 11-14 basis points and the back end around 6bps higher. This is divergent to other LatAm curves that have shifted lower in line with US yields.
    • Focus now turns to the outcome of this weekend's elections for the constitutional assembly, the election of mayors, councillors and regional governors. All likely to play a pivotal role in shaping the general elections scenario.
    • In domestic data, Tuesday we will have the release of first quarter GDP.
  • USDCLP down 0.47% at 704.63
  • Chile Camara Swaps Curve:
    • 1-yr +11 bps at 0.86%
    • 2-yr +14 bps at 1.6%
    • 5-yr +12 bps at 2.77%
    • 10-yr +5 bps at 3.66%
    • 30-yr +7 bps at 4.36%

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