An increase in the yields of U.S. Treasury bonds has increased the sale of bonds in dollars, impacting on Costa Rican bonds traded internationally and in the domestic market.
From a report on 'Pulso Bursátil', the blog by Aldesa:
Fall in Costa Rican Bond Prices Sharpens
As mentioned recently, the rise in yields of U.S. Treasury bond has triggered a sell-off of dollar-denominated bonds, which firstly hit hard Costa Rican internationally traded bonds, but recently has also started to affect Bond prices traded in the domestic market.
Rumors are that the U.S. Federal Reserve is preparing to reduce its bond purchase program, motivating the sale of bonds in emerging markets.
"A rise in bond yields in developed markets and a better prognosis for the U.S. economy are making bonds from the emerging countries, from Turkey to Chile, seem less attractive. On Friday, currencies, bonds and shares in these markets fell significantly," noted an article in Wsj.com.