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Colombia’s dollar bonds inched higher after recent primary elections reshaped the outlook for the May presidential race, boosting investor optimism for a more market-friendly government. Conservative senator Paloma Valencia won a decisive 55% of votes in the main opposition primary, drawing more than three million voters and emerging as a credible challenger to leftist candidate Iván Cepeda. The strong result surprised investors, as previous polls had placed Cepeda well ahead and focused attention on hardline conservative Abelardo de la Espriella. Following the outcome, Colombian dollar bonds inched higher. Analysts note that higher oil prices have also supported Colombia’s bonds, helping it outperform many emerging markets amid the recent spate of geopolitical tensions. However, they added that despite the positive market reaction, uncertainty remains. They believe that Valencia must broaden her appeal to centrist voters ahead of the general election, while congressional results showed continued strength for President Gustavo Petro’s left-wing coalition.
The 7.75% 2036s rallied by 1.1 points to 104.3 cents on the dollar, yielding 7.1%.
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