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Colombian bond yields fall on bets over slow growth

Friday, July 6, 2012

Colombia’s peso bonds gained, pushing benchmark yields to a record low, on speculation slowing growth will ease inflation and lead the central bank to cut borrowing costs this year.

Colombia’s central bank on June 29 held the overnight lending rate for a fourth straight month at 5.25 percent as growth cooled and prices for the country’s commodities exports dropped. “People have been cutting their inflation forecasts as the economy decelerates,” said Cristian Duarte, an analyst at Global Securities brokerage in Bogota.

Source: Bloomberg