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US Equity Indices Bounce Prompts Temporary Relief For LatAm Assets

LATAM

LATAM: A bounce in US Equity Indices halts the decline in MXN and BRL and offers temporary respite. USDMXN stopped just shy of most recent high of 20.4950 and subsequently has fallen 0.5% back to 20.37 as of writing. USDBRL also unable to crack most recent highs at 5.4550 from 4th/5th February but remains up 0.4% on the day at 5.43.


Brazil swap rates, despite opening lower in a reversal of yesterday's move, have since come back under pressure and are largely unchanged in the front end and down between 4-6 bps at the longer end. Elsewhere, LatAm Swap rate curves all shift higher with bear steepening seen in Mexico and Colombia.


Colombia Swaps:

  • 1-year swap +3 bps at 1.85%
  • 2-year swap +5 bps at 2.34%
  • 5-year swap + 9bps at 3.5%

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