NEW YORK, Dec 17 (Reuters) - El Salvador"s bond yield spreads to U.S. Treasuries widened to fresh record highs on Friday after steepening the most for any week in 17 months. Salvadoran debt spreads measured by JPMorgan"s EMBIG index (.JPMEGDELSR) hit 1,468 basis points, a record high, after widening nearly 160 bps this week alone --the largest weekly steepening since early May 2020. Spreads have widened nearly 1,000 bps since late April, at the start of a perceived power grab by the government of President Nayib Bukele. Last week, Reuters reported U.S. authorities are preparing criminal charges against two Salvadoran senior officials, accusing them of negotiating a secret truce with gangs. read more Tensions have risen sharply between Washington and Bukele"s government and investors have all but given up on the likelihood of a financing deal with the International Monetary Fund that the government had requested earlier this year for about $1 billion. "The break below prices of 60 on the long end of the Eurobond curve might reflect the thin year end trading liquidity and the hesitancy to take risk," said Siobhan Morden, head of Latin America fixed income strategy at Amherst Pierpont Securities in a note to clients. "However, the current prices appear oversold for discounting a high probability of default against near term manageable debt service and liquidity options."