Chile is returning to the international debt markets for the second time in 2026, shortly after its Congress approved an increase in sovereign bond sales limits. The nation's economy is one of Latin America's most stable, supported by mining, services, and a developed financial sector, with Santiago serving as its capital and the Chilean peso (CLP) as its currency. The Chilean bonds market includes government securities, central bank bonds, corporate bonds, and mortgage-related instruments, with trading occurring through exchange and over-the-counter channels. The Ministry of Finance's Public Debt Office manages government bond issuance in local currency and inflation-linked units, which helps establish benchmark yields.
Foreign investors are significantly increasing their investment in Chile's government debt. Non-resident holdings of peso-denominated sovereign bonds surged by $700 million in August to a record $21.04 billion. This marks a 42% increase since the beginning of the year, substantially outperforming growth in other Latin American countries. This influx of foreign capital is attributed to a resurgence of "Sell America" sentiment among investors, combined with Chile's credible fiscal outlook and ongoing market reforms, which are making its bonds more appealing.
Chile is also actively engaged in sustainable finance, issuing sovereign green, social, sustainability, and sustainability-linked instruments. These initiatives further enhance its attractiveness to a broader range of investors, including those with environmental, social, and governance (ESG) mandates. The robust financial framework, coupled with these sustainable offerings, positions Chile favorably in the global debt market.
In related developments, the Swiss National Bank (SNB) maintained its benchmark interest rate at zero, the world's lowest, for the fifth consecutive quarter. This decision, announced on September 24, 2026, involved removing previous language about an "increased willingness" to intervene to weaken the franc, though the SNB stated it remains prepared to act in the foreign exchange market if needed. The SNB also raised its inflation forecasts, predicting 0.7% for 2026 and 0.8% for the following two years, while keeping its economic growth forecast for this year between 1.5% and 2%.
