Argentina, Mexico, Venezuela: Local Bond and Currency Preview

The following events and economic reports may influence trading in Latin American local bonds and currencies today. Bond yields and exchange rates are from the previous day's session.

Argentina: President Nestor Kirchner yesterday said the unemployment rate fell to 8.1 percent in the third quarter, the lowest since October 1992, compared with 8.5 percent in the second quarter. Industrial production rose 9.3 percent to 9.5 percent for the 12 months through October, Kirchner said.

The national statistics institute is scheduled to release its third-quarter unemployment report Nov. 22 and industrial production data on Nov. 23.

The yield on Argentina's 5.83 percent inflation-linked peso note due in December 2033 fell 1 basis point to 8.57 percent, according to Citigroup Inc.'s unit in Argentina.

Argentina's peso was little changed at 3.1315 pesos per dollar.

Mexico: The unemployment rate probably fell to 3.81 percent in October, from 3.87 percent the previous month, according to the median forecast of economists surveyed by Bloomberg News.

The government is scheduled to release the data at 3:30 p.m. New York time.

The yield on the 7.25 peso-denominated bonds due in December 2016 rose 4 basis points to 8.09 percent, according to Banco Santander SA.

Mexico's peso rose 0.3 percent to 10.966 per dollar.

Venezuela: The country plans to sell $250 million of dollar-denominated bonds due in 2038 starting today. Venezuela also plans to offer 268.8 billion bolivars ($125.2 million) of 10.37 percent local-currency bonds due in May 2013 and 268.8 billion bolivars of 10.37 percent bolivar securities maturing May 2014, the Finance Ministry said in a statement yesterday. The government plans to accept bids today and tomorrow, and will announce results on Nov. 23.

The bolivar gained 1.6 percent to 6,300 bolivars per U.S. dollar in the unregulated market, traders said.
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