Economics
Venezuelan Bonds Fall After Contested Regional Election Result
- Government claims 17 of 23 states; opposition cries fraud
- Polls showed opposition was likely to win a majority of states
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Venezuelan bonds tumbled after the government claimed a surprise victory in regional elections and the opposition cried fraud. The perceived foul play increases the risk of further sanctions against the oil producer.
The extra yield investors demand to hold Venezuelan debt over U.S. Treasuries widened 116 basis points to 32.32 percentage points, the highest in the world. A dollar bond issued by state-run oil company Petroleos de Venezuela SA that matures in two weeks fell 1.6 cent to 92.3 cents on the dollar.