▶️ El Salvador & Bitcoin Bond: Today, El Salvador is practically shut out of the traditional bond market. The only potential buyers of the new $1B "#Bitcoin bond" are small investors and #crypto enthusiasts. #Retweet 🧵1/4 
The new bitcoin bond will have an annual coupon of 6.5% far below the prevailing interest rate on the country’s existing overseas bonds, which have seen yields spiral higher this year as investors baulk at the increasingly unorthodox direction of #Bukele’s economic policy. 2/4
The sell-off in Salvadoran debt continued on Monday, pushing the yield on a bond maturing in 2032 above 13%. The country has 10 international dollar bonds worth $US7.65 billion, roughly 30% of its GDP and about a third of its overall government debt. 3/4
Its next debt repayment is a $US800m bond maturing in January 2023. That bond currently trades at a price of less than 84¢ on the dollar — and a yield of nearly 25% — indicating considerable anxiety about El Salvador’s ability to make the payment. 4/4
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