Bolivian sovereign bonds fell for the tenth consecutive day on Tuesday, as road blockades cut off food, fuel, and medical supplies to the capital, La Paz.
Dollar-denominated bonds have lost more than five cents over the past two weeks, the worst performer among emerging markets. The yield on the 2031 bond rose to 10.6%, up from 9.75% at the issuance three weeks ago. The 2030 bonds fell more than a cent on Tuesday. Barclays recommended selling the 2031 bonds.
Nearly 60 road blockades in six of Bolivia's nine departments, primarily in the west, have disrupted supply chains. The blockades threaten to paralyze La Paz's economy and accelerate inflation, which is already in the double digits.
Protesters are demanding the resignation of President Rodrigo Paz, who took office seven months ago. The protests are being led by the national union, the La Paz farmers' federation, and supporters of former President Evo Morales. Paz's calls for dialogue have gone unanswered.
Morales has been hiding in Lauque N since October 2024 to avoid arrest warrants for charges of raping minors and human trafficking. On Monday, coca growers seized an army base in Cochabamba in search of foreigners they claim were plotting to seize it.
The Bolivian Senate passed a bill on Tuesday simplifying the procedure for declaring a state of emergency, which would suspend certain civil rights. The bill is currently being considered by the lower house of parliament.