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Colombian Election Spooks Bond Investors Buffeted by Peru and Chile

  • An anti-oil leftist is leading polls ahead of the May vote
  • Similar swing to the left in Chile and Peru has hit markets
Gustavo Petro speaks during a campaign rally in Marinilla, Antioquia department, Colombia, on Feb. 13.
Gustavo Petro speaks during a campaign rally in Marinilla, Antioquia department, Colombia, on Feb. 13.Photographer: Edinson Ivan Arroyo Mora/Bloomberg
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Money managers who hold Colombian bonds are in for a rocky election period if the recent examples of Chile and Peru are anything to go by, and the prospect of global monetary tightening affecting markets means it could be even uglier.

Investors and analysts are urging caution ahead of the Andean nation’s May 29 election as an anti-oil drilling candidate emerges as a front-runner in a country where crude is the No. 1 export. It’s reminiscent of risks that arose for financial markets as both Chile and Peru swung to the left over the past year.