(Bloomberg) -- Bolivia’s dollar bonds rebounded Thursday after an attempt by the army to seize power failed within hours of soldiers storming the presidential palace.

Notes expiring in 2028 and 2030 gained as much as 2.8 cents on the dollar, paring Wednesday’s slump triggered by the attempted coup, according to traders and indicative pricing compiled by Bloomberg.

Bonds had fallen after a group of soldiers led by top general Juan Jose Zuñiga crashed an armored vehicle into the presidential palace and entered the building, while blocking streets leading to the capital’s main square, according to TV reports. 

Officers participating in the raid started to pull back shortly after President Luis Arce appointed new military leadership, replacing Zuñiga. In a presser, the new commander of the Armed Forces, Jose Wilson Sanchez, ordered military personnel to return to their units. 

President Arce thanked supporters from the balcony of the presidential palace. Shortly after his arrest, Zuñiga told reporters that Arce himself had staged events to boost his popularity.

“Regardless of interpretations, we see the event as a credit-negative manifestation of the growing political uncertainty and institutional deterioration in Bolivia,” EMFI Securities economist Pilar Navarro wrote in a report to clients.

Arce’s socialist government, which was elected in 2020, has recently struggled with an economic crisis amid dwindling natural gas exports, a shortage of dollars and a currency peg that has effectively collapsed. Bolivia is among the world’s most politically turbulent nations, having had nearly 200 coups and revolutions since it won independence from Spain two centuries ago.

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