Colombia’s dollar bonds were lower by 1.5-3 points as the President Gustavo Petro plans on a cabinet rejig following a series of setbacks that he said was a disintegration of the ruling coalition. He has asked his ministers to resign ahead of the potential rejig. The opposition and some from his own cabinet have opposed Petro’s plan to enhance the state’s involvement in health care, the pension provision as well as increase worker rights. Besides, lawmakers have decided to remove an article that would allow the government to buy land for farmers as part of a peace deal with illegal armed groups. Petro said, “We have to install a government of emergency, given that congress wasn’t capable of approving some simple articles”.
The broad political instability has seen the sovereign’s dollar bonds fall. Its longer dated bonds fell the most – the 6.125% 2041s fell 2.9 points to 78.4, yielding 8.51%.
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