Peru’s New President, Prime Minister Raise Risks as Debt Tumbles
- Century dollar bonds are second-worst performers in the world
- Yield on 2031 dollar bonds jump to the highest since June 16
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Investors sent Peruvian bonds sliding in the aftermath of President Pedro Castillo’s inaugural call for a new constitution and choice of prime minister.
Peru’s dollar bonds due in a century are the second-worst performers in the world on Thursday, beating only serial-defaulter Belize, according to data compiled by Bloomberg. Meanwhile, the yield on the benchmark bond due in 2031 rose to the highest since the close on June 16, a day after the final vote count showed Marxist party-backed Castillo winning the election. The cost of insuring the nation’s debt against default has climbed six basis points since his speech Wednesday, reaching the highest level in over a month. Peru’s local markets are closed for a national holiday.