Panama Court Clears Presidential Frontrunner’s Candidacy, Sparking Bond Rally

  • Top court rejects challenge to presidential frontrunner’s run
  • Decision removes key risk for bond investors ahead of election

Jose Raul Mulino during his closing campaign rally in Panama City.

Photographer: Martin Bernetti/AFP/Getty Images
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Panama’s bonds rallied after the nation’s supreme court cleared the way for frontrunner Jose Raul Mulino to compete in Sunday’s presidential election, removing a key risk for markets.

Judges on Friday rejected a challenge that sought to disqualify Mulino, a pro-business candidate who leads in polls, the Associated Press reported. The last-minute ruling was embraced by investors with Panama’s dollar notes leading gains across emerging markets.