EM LATAM CREDIT: MNI EM Credit Market Wrap - LATAM
Measure Level Δ DoD
5yr UST 4.6% +13.7bp
10yr UST 4.8% +8.8bp
CDX EM 97.01 (0.13)
CDX EM IG 100.69 (0.08)
CDX EM HY 93.04 (0.19)
WTI Crude 76.6 +2.7
Gold 2689 +22.0
USDMXN 20.73 +0.22
USDBRL 6.10 +0.07
USDCLP 1012.1 +4.90
USDPEN 3.77 +0.01
USDCOP 4346 +13.65
Main stories recap:
Global liquid EM sovereign bonds both high grade and high yield were generally down .50 to 75 into the close, recovering about .25 from the gap lower post the stronger than expected US jobs report while corporate bonds were down about .25. Underperformers were names like SOAF, Romani and KSA in the long end that fell more than a point while Turkey 10 year bonds managed to only fall .30. In Latam, recently issued Codelco 10yr bonds were .45 lower than new issue pricing while new Mex 10s/30s were down .45 and .75 respectively and new Chile 12 yr fell .60 from issuance with almost all of those losses from new issue coming from today’s sell off. The new YPF 9 yr traded lower but unchanged from issuance, giving up gains from two days ago. The headline payroll number of +256k vs 160k expected and 4.1% vs 4.2% from the household survey triggered an immediate selloff in 10 year Treasuries of ¾ point and a point in the long end with liquid EM adjusting quickly while off the run high yield corporate bonds showed less correlation and outperformed.
VENZ - Venezuela closed the border with Colombia temporarily
Maduro sworn in for 3rd term, new sanctions announced
PANAMA - Panamanians rallied, marking the anniversary of the violent 1964 protests against the canal
COLOM - New poll shows Petro disapproval rises to 56%
ARGENT - * Poll shows Argentines more positive on Milei's Economy
* The Argentine govt modified regulations to make issuance of corp debt more efficient
RRRPBZ - Brava receives bid for onshore shallow water assets
MEX - Mexico to spend MXN8bn to remodel airport
BIMBOA - Bimbo to issue up to MXN15bn local bonds
BRAZIL - Brazil seeks ADNOC investment
GUATEM - Dec. remittances up 10% y/y
ELSALV - BofA downgrades Elsalv bonds post rally
CDEL - Nov Copper Output Up MoM and Y/Y