Eight days ago Venezuela's benchmark 2027 bond reached a five-month high at 28 cents on the dollar, but has now risen higher still to 31 cents on the dollar. Similarly, state-owned oil company Petroleos de Venezuela's bonds also rallied sharply to 20 cents on the dollar Wednesday, up from 17 cents a week ago.
The countrys bonds are nearly all in default as Venezuelas hyperinflationary economy spirals downward. Investors have generally seen few opportunities for debt restructuring under the current administration given that Maduro's government is under US sanctions.
The opposition-run congress declared incumbent President Nicolas Maduro a usurper last week, and the United States and numerous Latin American governments have called the legislature the countrys only legitimate institution. Most Latin American countries have now backed Juan Guaid as Venezuela's leader, as have the UK and European Union.
Venezuela's economy has been tanking in recent months with GDP growth coming in at negative 17% for 2018 as the country's population struggles for basic necessities and many citizens forced to take drastic measures to survive.
Maduros government and state-owned companies owe some $8 billion in unpaid interest and principal amid the collapse of the countrys once-wealthy socialist economy.
However, improving commodity prices oil in particular could provide a boost to the country's economy given Venezuela's huge natural resource reserves.
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