Friday, May 9, 2008

Venezuelan bonds fell amid speculation that links between President Hugo Chavez and guerrillas fighting Colombia's government may be extensive

Venezuelan bonds fell, sending yields over U.S. Treasuries to their widest in six weeks, amid speculation that links between President Hugo Chavez and guerrillas fighting Colombia's government may be extensive.
The extra yield investors demand to own Venezuelan dollar debt rather than Treasuries widened 8 basis points, or 0.08 percentage point, to 6.49 percentage points at 12:05 p.m. in New York, according to JPMorgan Chase & Co.'s EMBI Plus index. The so-called spread, at its widest since March 17, had earlier swelled as much as 20 basis points.
Computer records found on a dead guerilla leader's laptop after a military raid in March suggested Chavez may be offering the Revolutionary Armed Forces of Colombia, known as the FARC, rocket-propelled grenades and ground-to-air missiles, the Wall Street Journal reported, citing its own review of the data. The files also indicate that Venezuela offered the FARC the use of a port to receive arms shipments, the Journal reported.

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