Venezuela Bonds Extend Drop After US Threatens to Renew Sanctions
- Government dollar bonds due in 2027 drop most since 2020
- JPMorgan had said it may raise Venezuela weighting in indexes
The State Department said President Nicolas Maduro’s backsliding on his promise of open elections would prompt a review.
Photographer: Manaure Quintero/BloombergVenezuelan bonds extended their worse selloff since the onset of the pandemic after the US warned sanctions will be restored if the government continues to block opposition candidates from running in this year’s elections.
Government notes due in 2027 sliding 2.2 cents on the dollar to 19.2 cents, the biggest drop since March 2020, according to traders and indicative price data compiled by Bloomberg. Bonds of the state oil company Petroleos de Venezuela SA, or PDVSA, due in 2026 also dropped one cent.