This site uses cookies to provide you with a great user experience. By using BondbloX, you accept our use of cookies.
Bond Market News
El Salvador’s Dollar Bonds Trade Volatile Amid the Crash in Bitcoin Prices
February 13, 2026
El Salvador’s dollar bonds dropped by 2-3 points last week, but have almost recovered the move. Analysts have highlighted that the sharp fall in Bitcoin prices has increased the financial pressure on El Salvador. This comes amid the nation’s adoption of the cryptocurrency as legal tender whilst continuing to accumulate it. The recent sell-off has reduced the value of national holdings to about $500mn from around $800mn. Market participants have stated concerns regarding the cryptocurrency policy potentially jeopardizing a $1.4bn IMF loan program. The IMF has already delayed reviews of the program, citing the government’s ongoing Bitcoin purchases and postponed pension reforms. A breakdown in the IMF relationship would remove a key support for El Salvador’s debt. Although the country still has about $4.5bn in reserves and some bonds remain above par, large upcoming financing needs — including $450mn in bond payments this year and nearly $700mn next year — increase the importance of IMF cooperation. Some investors believe Bukele may rely on political support from the US instead, but losing IMF backing could significantly weaken market confidence. Despite improved security conditions and a narrower fiscal deficit, the Bitcoin strategy has made the nation’s finances more volatile and has been a key risk factor for its sovereign credit outlook.
Its 7.65% 2035s traded stable at 105.1, yielding 6.9%
For more details, click here
Go back to Latest bond Market News
Related Posts:
Credit rating boost for Ireland & Portugal: EU inches towards recovery
September 20, 2017
China Refutes S&P Downgrade Action
September 26, 2017
Mongolia’s Credit Ratings Upgraded to B3 by Moody’s
January 19, 2018
BondbloX Pte. Ltd. is regulated by the Monetary Authority of Singapore as a Recognised Market Operator ("RMO") and exempted from Section 49(1) of the Securities and Futures Act (Cap. 289) ("SFA") under Section 49(7) of the SFA.