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Peru Bonds Slip as Investors Lose Patience With Politics

  • Nation’s risk premium widens amid political risk, protests
  • Castillo stares down potential for another impeachment attempt
Demonstrators during a protest in Lima, Peru, on Thursday, April 7, 2022. They hold a sign in white and red that calls for the closing of Congress.
Demonstrators during a protest in Lima, Peru, on Thursday, April 7, 2022. They hold a sign in white and red that calls for the closing of Congress.Photographer: Miguel Yovera/Bloomberg
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Peru’s foreign debt has touched record lows as a wave of social unrest amid quickening inflation upends a market once famed for its resilience to near-perpetual political crisis.

Government bonds due in 2031 have tumbled 5.5 cents since early last week to trade at 89 cents on the dollar on Tuesday, lingering near an all-time low. The extra yield investors demand to hold Peru’s bonds over U.S. Treasuries, meantime, is at 194 basis points, versus just 165 a week prior, according to JPMorgan Chase & Co. data.