Venezuela's weight was 0.5pc, 0.9pc and 1.2pc in the EMBI Global Diversified, EMBI Global and EMBI+ indices, respectively, it added.

As a result of dialling down the weighting, JP Morgan said the headline EMBIGD yield and spread were estimated to compress by about 45 basis points.

Trading in debt issued by the government and its state-run oil company PDVSA ground to a halt earlier this year after Washington imposed sweeping sanctions on Venezuela in a bid to force President Nicolas Maduro and his allies from power.

Opposition leader Juan Guaido, who declared himself interim president on Jan. 23, has received the backing of the United States, along with most other countries in the western hemisphere.

JP Morgan said it could open another index watch process in "the event of any favorable official guidance around easing of trading restrictions or consistent, observable improvements in liquidity and replicability of Venezuela bonds."