March 31 Bonds issued by the Venezuelan
government crashed on Friday as political tensions escalated
following the annulment of the country's legislature by its high
court earlier this week, a move that ignited protests and
The price on Venezuela's benchmark $4 billion bond maturing
in September 2027 with a 9.25 percent coupon fell by more than
3.5 cents to around 46.4 cents on the dollar, Thomson Reuters
Its yield, which moves in the opposite direction of price,
shot up by 1.55 percentage points to nearly 23 percent, the
highest since last August. It was the largest one-day rise in
yield since October.
The country's high court late Wednesday stated it was
assuming Congress' role in a ruling authorizing President
Nicolas Maduro to create oil joint ventures without the
previously mandated congressional approval.
The move was met with international condemnation and street
protests, and on Friday the fallout intensified when Venezuela's
attorney general broke ranks with Maduro and rebuked the
judiciary for its move.
Some longer-dated bonds were even lower in price. The less
widely traded March 2038s, with a 7 percent coupon, were bid at
40 cents on the dollar, down from 42.6 cents on Thursday. Their
yield rose to 18.22 percent from 17.17 percent.
(Reporting by Dan Burns; Editing by Jeffrey Benkoe)