On Tuesday, the financial information platform Bloomberg highlighted that the bonds in dollars in Costa Rica had their biggest collapse in eight months, after knowing the results of a survey that places legislator Fabricio Alvarado as a favorite for the elections of February 4th.
According to a statement from the analyst company, yields on dollar bonds due in 2023 rose 14 basis points to 4.88% at 11:08 a.m. in New York, the largest intraday gain since May 2017. A rise in yields demanded by investors implies a fall in the prices of these bonds.
The note adds that the candidate of the National Liberation Party is the one with a greater empathy among investors.
There was some optimism that Álvarez approved a comprehensive fiscal reform, and that is much less true now,”
Eurasia Group analyst Risa Grais-Targow told Bloomberg. The platform highlights that Alvarado has been less concise in his economic policy plans and that’s an additional element of uncertainty.
According to the report, the stock market is beginning to lose hope on the approval of a fiscal reform and with that comes greater pressure on the bonds and the local currency.
Bloomberg provides specialized financial information through its international payment platform.