Bernanke buys time for Brazil to India as rupiah leads rally

Colombia, Turkey

Colombia hired Deutsche Bank AG and HSBC Holdings Plc to sell overseas dollar securities due in 2024, according to a regulatory filing. The country may sell the bonds today to yield about 1.65 percentage points more than U.S. Treasuries, according to a person familiar with the offering who asked not to be identified because the terms aren’t set. The benchmark offering will be at least $500 million, the person said.

Brazil’s development bank, BNDES, plans to sell benchmark dollar bonds due in three and 10 years, a person said. Petroleos Mexicanos, Mexico’s state-owned oil company, is issuing peso- denominated debt due in 2024, another person said.

Garanti Bankasi AS, Turkey’s largest bank by market value, may boost the size of a bond sale by 38% to 900 million liras ($461 million). Turkey’s Treasury will hold investor meetings starting Sept. 23 for a possible sale of Islamic bonds. Armenia hired banks for a seven-year dollar bond sale, Chile’s Embotelladora Andina SA plans to meet with investors next week while the Eurasian Development Bank is also poised to sell, according to people familiar with the offerings, who asked not to be identified because the information is private.

External Financing

The yield on the benchmark U.S. 10-year note fell 16 basis points, or 0.16 percentage point, to 2.69% yesterday, making higher yielding emerging market assets more attractive.

“This has created a much better environment for risky assets,” Paul Denoon, who oversees $25 billion as the head of emerging-market debt at AllianceBernstein Holding LP, said in a phone interview from New York. “It’s important because one of the concerns for the market is the large external financing needs for developing countries. This creates stability.”

Strategists at Citigroup Inc. yesterday advised clients to buy the Mexican peso and bet 10-year interest-rate swaps will fall, saying the Fed’s decision boosts investor risk appetite.

Brazilian state development bank president Luciano Coutinho said he expects currency volatility to increase because the Fed didn’t start tapering.

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