new york nov 23 reuters  salvadoran bond prices fell between 1 and 2 cents on tuesday and spreads to us treasuries widened to a record above 1200 basis points as investors assess the countrys turn away from orthodoxy and towards cryptobased funding the international monetary fund late on monday recommended el salvador not use bitcoin as legal tender at the end of a scheduled visit el salvador in september became the first country to adopt bitcoin as legal tender alongside the us dollar the imfs recommendation came days after president nayib bukele announced el salvador was planning to build the worlds first bitcoin city which he said will be funded initially by bitcoin bonds read more the formal announcement of a bitcoin related usd bond issuance informally confirms a break from the imf with an alternative uncertain fundinggrowth model wrote siobhan morden head of latin america fixed income strategy at amherst pierpont in a note to clients the countrys 2025 note dropped 1125 cents to 70875 cents on the dollar yielding 1775 according to refinitiv data spreads to us treasuries jpmegdelsr hit 1201 basis points the widest on record fast rising from around 530 bps in mid april financing next years budget has become a concern on wall street with jpmorgan saying in a client note that challenges are acute in 2022 when we see extreme difficulty to meet financing needs absent a deal with the imf