Peso jumps on Columbia debt plans

Reuters was alone in bringing clients news on March 1 that Colombia’s government would seek to issue up to $800 million in foreign bonds or credit operations this year, probably in the first half. The early evening announcement made by the National Planning Department came after market close. But the next day the local peso strengthened almost immediately after the opening on expectations of a short-term increase in dollar inflows from the bond sales. The government had been expected to make up to $500 million in foreign bond sales but the new announcement upped the figure by another $300 million. The peso, up 7.3 percent this year, rose to 1893.53 versus the dollar from a previous close of 1911 after the government’s announcement. Analysts said the announcement coupled with the foreign investment figures bolstered strong expectations for dollar income.