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Colombia’s Dollar Bonds Dip as Ocampo Fails to Reassure Traders

  • Concern about a tax on capital outflows spooked investors
  • Finance Minister Ocampo ruled out idea but bonds kept falling
Jose Antonio Ocampo

Jose Antonio Ocampo

Photographer: Nathalia Angarita/Bloomberg

Colombia’s dollar bonds fell, nearing all-time lows, as investors remain concerned about a tax on capital outflows even as Finance Minister Jose Antonio Ocampo ruled out the idea.

The yield on the nation’s dollar-denominated notes due 2045 jumped 23 basis points to 9.1% on Friday as prices fell to 60.7 cents on the dollar, near the record low reached a week ago. The nation’s five-year credit default swap spread rose 16 basis points to 332 -- that’s about 35 basis points above the cost of insuring debt from Brazil, which is rated two notches below Colombia.