Peru Bonds Fall as Leftist Takes Big Lead Ahead of Runoff

Peru’s currency and bonds tumbled Monday after an opinion poll showed leftist presidential candidate Pedro Castillo as the clear favorite ahead of June’s presidential runoff, Bloomberg News reported. The Peruvian sol turned in the worst-performance in the developing world. Castillo, whose party has praised Fidel Castro and Venezuela’s Hugo Chavez, is leading Keiko Fujimori by 11 percentage points, according to the survey by Ipsos Peru carried out between April 15 and 16. Fujimori is the polarizing right-wing daughter of a jailed former president. The sol slid 1.14% to close Monday at 3.6730 per dollar, the biggest daily loss since November, while the nation’s dollar-denominated bond due in 2051 declined as much as 2.24%, the biggest drop since it was issued a month ago. Meantime, the cost of insuring the country’s debt against default over the next five years briefly jumped to the highest since June. The S&P/BVL Peru General Return Index, which measures Peruvian stocks, tumbled the most since November. Read more.
Location