March 6, 2013 / 4:36 PM / 5 years ago

Venezuelan debt prices drop

NEW YORK, March 6 (Reuters) - Venezuelan debt prices fell on Wednesday as investors, who bid up prices in the months before President Hugo Chavez’s death on Tuesday took advantage of early buying to sell into the rally, knocking benchmark bonds sharply lower.

The 2027 sovereign U.S. dollar-denominated Global bonds were bid down 2.10 points in price, lifting the yield up to 9.168 percent, according to Reuters data.

“I think there was a lot of buying in anticipation of him dying and now we have hit the event. I‘m surprised there hasn’t been more selling,” said David Spegel, global head of emerging markets strategy at ING Wholesale Banking.

A charismatic firebrand, Chavez created a highly centralized political system, overseeing the widespread nationalization the country’s industries. Investors are hoping Venezuela moves back toward market oriented economic policies and away from Chavez’s socialist “Bolivarian revolution.”

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