Chile Peso Bonds Face Pressure if Strait of Hormuz Stays Closed

Currencies Chile Peso Bonds Face Fresh Pressure if Strait of Hormuz Stays Shut Chile’s peso borrowing costs risk hitting highs for the year in August as the Middle East conflict drags into its sixth month, even as the economy struggles to gain momentum. Of the 19 analysts and traders surveyed by Bloomberg last week, nine expect yields on three-year sovereign peso bonds to rise between 5 and 10 basis points this month if the Strait of Hormuz remains closed, enough to reach a record for the year. Another three see an increase of between 1 and 5 basis points.