Panama bonds head lower on third negative outlook
Panama’s bonds traded lower on Wednesday, a day after Moody’s became the third agency to place the sovereign’s rating on negative outlook. Moody’s highlighted, however, that Panama’s broad bond market access remained a key credit strength.
Yields on Panama’s bonds had already begun to widen this week as investors shied away from lower-beta Latin American sovereigns amid a sell-off in US Treasuries. But Moody’s announcement on Tuesday appeared to give the sell-off further impetus.