Ecuador’s dollar bonds were lower by more than 1 point across the curve on fears that President Guillermo Lasso may face an impeachment trial. Lasso is considered a market-friendly leader and analysts say that a new left-leaning administration is likely to cause a collapse in market confidence. The opposition wants to remove Lasso less than halfway into his four-year term on the grounds of him allowing corruption in the public administration. Judges in a court voted 6-3 for the National Assembly to go ahead with an impeachment trial. “Impeachment was one of the scenarios investors were fearing. The latest move by the Constitutional Court is certainly pointing toward its likelihood increasing.” said Sergey Goncharov, a money manager at Vontobel Asset. 92 votes are required to impeach Lasso, whom the opposition tried to remove in June 2022, but only garnered 80 votes.

Ecuador’s 5.5% 2030s were down over 1.6 points to trade at 45.8, yielding 19.9%.

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