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

Last week, the US Treasury yields rose across maturities, with the 1Y, 2Y, 5Y, and 10Y increasing by 3 bps, 15 bps, 17 bps, and 10 bps, respectively, reflecting a steeper rise in shorter-term yields. Despite the further rise in the USD sovereign yields, Regional Cbonds USD price indices showed broad gains, with corporate and sovereign segments advancing across almost all emerging markets with Asian corporates as an exception, led by strong performances in Latin America and Africa.

In emerging markets, New World Development and New World China Land bonds dropped sharply due to refinancing challenges and exposure to Hong Kong and mainland China's struggling property markets, with developers like Lai Sun Development and Longfor Group Holdings continuing to face headwinds from weak property demand and financial stress. Braskem bonds faced pressure from the increasing leverage after the recent large-scale investment commitments. On the positive side, Grupo Televisa bonds gained after a buy rating upgrade and improved earnings estimates, and Pemex saw modest gains amid restructuring efforts.

In developed markets, last week Teck Resources bonds rose by 2.90%, supported by strong stock performance amid fluctuating commodity prices. Taseko Mines bonds increased 1.35% following the resolution of a long-standing dispute over its New Prosperity project, boosting investor confidence. On the downside, Fannie Mae bonds fell 0.74% amid rising Treasury yields and concerns over U.S. housing market stability, and Electricite de France (EDF) bonds declined 0.85% against the backdrop of challenges in the power sector after the recent power outages in Spain. Heineken securities fell in price as the company is effecting a share buyback program.

Bond market news highlights of the last week include peak pessimism over US Treasuries amid rising yields and credit rating concerns, Goldman Sachs dismissing fears that 5% Treasury yields will crush stocks, and a US Fed official signaling potential rate cuts later this year if inflation and labor market conditions align.

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