Slovenian Bonds Extend Rally as Investors Shrug Off Fitch Cut

Slovenia’s benchmark bonds rallied, pushing the yield to the lowest in almost two weeks, as investors disregarded a credit rating cut by Fitch Ratings amid government efforts to pull the nation out of a recession.

The yield on the dollar-denominated bonds maturing in 2022 dropped three basis points, or 0.03 percentage point, to 5.3 percent, the lowest since May 9, as of 9:25 a.m. in the capital Ljubljana. The yield retreated 2 basis points last week, the fifth weekly drop. Slovenia’s credit score was cut one level to BBB+ by Fitch on May 17, the third-lowest investment grade, with a negative outlook amid a worsening economic situation and a widening budget deficit.