# Colombia's markets under pressure after second downgrade to 'junk' | Financial Post

> Fitch downgraded Colombia to junk, becoming the second major rating agency to do so. Colombian markets came under pressure as the premium investors demand over U.S. Treasuries rose 5 bps to 255 bps, its highest since October 2020. Five-year credit default swaps widened 6 bps to 143 bps and the peso weakened as much as 0.6% before trimming losses.

- Date: 2021-07-02 · published 2021-07-02T12:00:00.000Z
- Category: macro · region Colombia · magnitude low
- Page: https://feedsoft.ai/events/46340-colombia-s-markets-under-pressure-after-second-downgrade-to-junk-financial-post
- Commodities: [Colombian Peso (COP per USD)](https://feedsoft.ai/c/USDCOP.md)

## Why it matters

A sovereign downgrade to junk raises Colombia's borrowing costs and pressures the peso, which tends to lift USD/COP and can weigh on domestic financial conditions. For feed buyers the direct grain impact is small, though a weaker peso can make imported feed inputs more expensive for Colombian producers.

## Read by commodity

- USDCOP: bullish ▲

## Sources

- financialpost.com: https://financialpost.com/pmn/business-pmn/colombias-markets-under-pressure-after-second-downgrade-to-junk

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.