Ecuador's Election Uncertainty Shakes Bond Market

Ecuador's government bonds are expected to decline when trading resumes, following a presidential election that ended without a clear winner. Daniel Noboa and Luisa Gonzalez head to a runoff on April 13, casting a shadow of uncertainty. Brokers forecast a bond market dip amid these developments.

Ecuador's government bonds are poised for a decline when trading recommences on Monday following a presidential election that produced no outright winner.

Daniel Noboa and Luisa Gonzalez both secured around 44% of the vote, leading to an April 13 runoff. Pre-market expectations predict a 5% drop in Ecuador's key sovereign bonds.

Brokers warn of uncertainty while noting Noboa as a market favorite due to his stance on debt and crime. Meanwhile, outsider Leonidas Iza, who gained 4.8%, may influence remaining voter dynamics.