Ecuador Bonds Jump as Holders Say Noboa to Stick to Subsidy Cuts

Ecuador’s past two presidents both tried to slash onerous diesel subsidies, only to be forced into climb-downs by mass protests. Now Daniel Noboa is trying again, and bond investors are betting he will stay the course.

Dollar notes from the South American nation are among the best performers in emerging markets this week, reversing most of last week’s slump that followed demonstrations over the cut in subsidies. The yield on notes due 2035 has tumbled more than one percentage point to 11.33%.

Ecuador’s President Daniel Noboa

Photographer: Evaristo SA/AFP/Getty Images

Protests over the jump in diesel prices have so far remained largely confined to a heavily Indigenous ...