Colombian bond rise faces the risk of faltering amid escalating tensions with the U.S.

Jin10 data reported on October 20 that Colombian dollar bonds fell across the board on Monday, with recent gains thwarted. Previously, U.S. President Trump accused Colombian President Gustavo Petro of being an “illegal drug lord,” raising market concerns about economic retaliation against the country. According to indicative quote data compiled by institutions, the country's long-term dollar bonds have become the worst-performing variety in emerging markets, with the bonds maturing in 2061 falling nearly 1 cent to around 61 cents per dollar face value. The Colombian peso fell by 1.4% in Bogotá trading. Over the past three months, the country's bonds have continued to strengthen due to government reforms in borrowing strategies aimed at alleviating the debt burden. At the same time, the market bets on a more market-friendly government after next year's election also provide support for the bond market. Last Sunday, Trump posted on social media that the U.S. would suspend aid to Colombia and announced that tomorrow he would declare tariffs on Colombia, further exacerbating market worries.