(Adds analysts, inflation, background)
LONDON, Aug 2 (Reuters) – Sovereign dollar bonds issued by Peru suffered fresh falls on Monday after President Pedro Castillo named moderate economist Pedro Francke as finance minister.
The 2060 bond slipped 2.4 cents in the dollar to 87.9 cents, its lowest level since late June, Refinitiv data showed. Many other issues slipped 1 cent or more.
Peru’s bonds dropped sharply last week, its currency plumbed record lows and stocks tumbled after Castillo appointed Guido Bellido, a member of his Marxist party, as prime minister on Thursday, dimming investor hopes for a moderate administration.
Francke, appointed late on Friday, has had a moderating role since the presidential run off, setting communicating bridges with the market, said Diego W. Pereira at JPMorgan. However, this did little to diminish the lingering uncertainty over the government’s political and economic agenda
“Francke faces material…