Peru Bonds Enjoy Rare Respite as Political Storm Clouds Linger

  • Sol-denominated bonds have jumped since cabinet reshuffle
  • Departure of prime minister marks shift to the center ground
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Peruvian assets have enjoyed a rare respite after a turbulent year. It may prove to be short lived.

Sol-denominated bonds have returned 7.9% since President Pedro Castillo accepted the resignation of his Marxist prime minister on Oct. 6 as investors cheered what seem to be a shift to the center ground for the 11-week-old government. That was the best performance among local-currency debt in emerging markets over the period.