Venezuela Bonds Extend Drop as US Threatens to Renew Sanctions

Venezuelan bonds extended their worse selloff since the onset of the pandemic after the US warned sanctions will be restored if the government continues to block opposition candidates from running in this year’s elections.

Government notes due in 2027 sliding 2.2 cents on the dollar to 19.2 cents, the biggest drop since March 2020, according to traders and indicative price data compiled by Bloomberg. Bonds of the state oil company Petroleos de Venezuela SA, or PDVSA, due in 2026 also dropped one cent.

US officials said on Monday that the Biden administration would reimpose oil sanctions on Venezuela after a ...