Venezuelan Yields Continue To Slide

The yield on Venezuelan benchmark 91-day bonds fell to 8.4% at yesterday’s auction from 8.58% last week. Yields on government paper continue to slide down towards 8% as foreign exchange currency controls and a lack of alternative investments lead investors to choose government bonds in a market of rising oil prices and government spending. Currency controls were brought in two years ago but last week the government announced penalties for transactions in the parallel currency market.