HALISTER1: INSIDE CHILE: CLP Brushes Off Brexit Fear; Citi Sees Lower Rates

INSIDE CHILE: CLP Brushes Off Brexit Fear; Citi Sees Lower Rates

(Bloomberg) -- CLP +1.0% to 675.06/USD, resumes trading after 3-day weekend; peso has fallen less than 1% since Thursday close when U.K. voting results were still unknown, showing resilience amid global rout, Bloomberg strategist George Lei writes.
  • Pair remains in 670/690 range seen for most of time since June 3rd; local agenda empty until Thursday when May IP, retail and jobless data will come due
  • Citi recommends receiving 10-yr swap rate as global yields will stay lower for longer post-Brexit while Chilean spreads to U.S. are high, analysts Chintan Gandhi and Dirk Willer wrote in note Friday
    • Chilean rates least impacted among Latam by FX moves
    • Also recommends OW Chile sovereign bonds in EM portfolio in anticipation of higher weight in JPMorgan’s EM GBI index
  • NOTE: George Lei is an FX strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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