EM LATAM CREDIT: MNI EM Credit Market Wrap - LATAM (07 Mar)
Source: BBG
Measure Level Δ DoD
5yr UST 4.08% +3bp
10yr UST 4.30% +2bp
5s-10s UST 21.7 -0bp
WTI Crude 67.0 +0.7
Gold 2911 -0.8
Bonds (CBBT) Z-Sprd Δ DoD
ARGENT 3 1/2 07/09/41 845bp -21bp
BRAZIL 6 1/8 03/15/34 266bp -7bp
BRAZIL 7 1/8 05/13/54 354bp -4bp
COLOM 8 11/14/35 378bp -4bp
COLOM 8 3/8 11/07/54 464bp -3bp
ELSALV 7.65 06/15/35 464bp -2bp
MEX 6 7/8 05/13/37 265bp -2bp
MEX 7 3/8 05/13/55 325bp -2bp
CHILE 5.65 01/13/37 152bp -2bp
PANAMA 6.4 02/14/35 314bp -6bp
CSNABZ 5 7/8 04/08/32 581bp -3bp
MRFGBZ 3.95 01/29/31 300bp -4bp
PEMEX 7.69 01/23/50 667bp -2bp
CDEL 6.33 01/13/35 198bp -1bp
SUZANO 3 1/8 01/15/32 200bp -1bp
FX Level Δ DoD
USDBRL 5.79 +0.03
USDCLP 929.58 +0.61
USDMXN 20.3 -0.03
USDCOP 4130.25 +26.26
USDPEN 3.66 +0.00
CDS Level Δ DoD
Mexico 122 1
Brazil 174 (2)
Colombia 198 2
Chile 54 2
CDX EM 97.58 0.07
CDX EM IG 101.03 0.03
CDX EM HY 93.72 0.08
Main stories recap:
EM Asia and CEEMEA benchmarks were generally 1-2 bps wider with the primary market quiet across the globe. The February US labor report met expectations. Risk off became risk on after Fed Governor Kugler and Fed Chair Powell comments, so US equities losses became gains and US Treasury yields moved higher. Latam benchmark bond spreads tightened 4-7 bps. Argentina outperformed with bonds tightening about 20bps as the market anticipated an imminent IMF deal announcement. MEX bonds tightened about 3 bps despite the resignation of the finance minister as the news was expected. Ecuador bond prices drifted lower on continued concerns about the impact of a potential change in the Presidency post the April 13th runoff.
