Venezuelan Bonds Decline as Oil Drops, Finance Minister Departs

Venezuela's bonds fell for second day as oil, the South American country's biggest export, slid to an almost one-month low. The yield on Venezuela's benchmark 9.25 percent bonds maturing in 2027 climbed 5 basis points, or 0.05 percentage point, to 10.03 percent at 4:29 p.m. New York time, according to JPMorgan Chase & Co. The bonds' price fell 0.36 cent on the dollar to 93.35 cents. Demand for Venezuelan debt also slumped after Finance Minister Rafael Isea won his party's nomination over the weekend to run for governor in Aragua state in November. The ministry has been working on plans to buy back foreign debt in coming months, a government official familiar with the plans said last week. The buyback plan had stemmed bond losses in recent weeks. ``The upcoming change in the Finance Ministry and it's possible implications for debt management'' is weighing on Venezuelan bonds, said Michael Atkin, head of sovereign research at Putnam Investments in Boston.