Colombia
>>COP: Today we have seen offshore sellers in the session. COP saw net inflows on the day helping the currency appreciate ~1%.
>>IBR: IBR closes 10bps wider on average with offshore FM paying across the curve. IBR didn’t want to retrace despite core rates and coltes closing only a couple bps wider on the day. Extremely low liquidity with 5k all day traded outright on the interbank market.
Spot Mid CoD
Debt limit angst manifests in 21-day CMB auction; Gilts underperform cross-market before April inflation data; BoE’s Pill notes growth boost from immigration; EUR/USD falls below 1.08 after weak Manufacturing PMI; AUD/NZD closes flat before RBNZ meeting; US 10y at 3.692% (-2.3bp).
LatAm currencies ended mixed. COP was the key outperformer and CLP was the main underperformer. COP strengthened by 1.5%, to 4464, alongside higher oil prices. CLP weakened by 0.8%, to 803, alongside weaker copper prices. MXN underperformed BRL, yet both currencies weakened by 0.4% and 0.2%, to 17.96 and 4.98, respectively. The former was partially driven by domestic political developments. PEN ended stronger by 0.2%, to 3.69.
Local rates performance was also mixed. Within the 1y tenor, Mexico TIIE rates fell 1-2bp, while tenors 2y and longer ended 2-3bp higher; 5y TIIE rose by 2bp to 8.61%. In Chile, 1s5s steepened ~11bp, to -419bp. In Brazil, DIs outperformed with 10-15bp rally across most of the curve.