Ecuador's bond market is currently facing challenges due to a decrease in support for President Daniel Noboa ahead of the upcoming elections.

Noboa initially gained popularity by implementing tax increases and subsidy cuts, which resulted in impressive returns on the country's debt, ranking just behind Argentina among emerging markets.

However, the recent decline in support for Noboa has led to concerns about the future of Ecuador's bonds. The risk premium for holding Ecuadorian notes over U.S. Treasuries has significantly decreased, indicating a growing uncertainty in the market as investors reassess their positions in light of the political landscape.