#CbondsWeekly – all the latest updates in the world of Eurobonds

Last week, the US Treasury yields rose across the curve, with the 10-year yield increasing by 8 bps, while shorter maturities (1Y, 2Y, and 5Y) saw modest upticks of 2 bps each following the downgrade of the US sovereign credit rating by Moody's and week Treasury auction demand. Regional Cbonds USD price indices exhibited broad weakness, with corporate and sovereign segments across emerging markets posting declines, led by Latin America and Africa in sovereign bonds, while Asia showed relative resilience.

In emerging markets, Telefonica Moviles Chile bonds surged by 19.08 points following reports that the company secured a large loan from the parent company strengthening its liquidity position amid the reports of the upcoming sale of the Chilean entity. Sasol’s bonds rose 1.53 points after the company outlined a debt reduction strategy and revised dividend policy during its Capital Markets Day. Conversely, New World Development bonds dropped 4.12 points due to uncertainty around its perpetual bond redemption deadline.

In developed markets, the US sovereign rating downgrade contributed to broader market volatility and put pressure on U.S. Charter Communications Operating holds its position in the top gainers' list. Alphabet securities face negative price pressure due to the ongoing antitrust investigation in the field of online?advertising infrastructure.corporate bonds, particularly those sensitive to U.S. economic conditions. Microsoft and Amazon bonds declined 3.05% and 2.95%, respectively, as well.

Bond market news highlights of the last week include heightened concerns over US debt sustainability due to the GOP budget bill, China's rate cuts to counter economic slowdown, and rising yields in US and German bonds amid global market turbulence.

You can read the full version of the report in Research Hub Cbonds