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

Last week, the US Treasury yields showed moderate downward movements amid the escalated geopolitical tensions. The USD Corporate and Sovereign indices displayed varied regional performance: while most corporate segments, such as Africa and Latin America, posted gains, the Middle East Corporate USD Index saw a slight decline. Sovereign indices also diverged, with Africa and the Middle East advancing, while Latin America and Asia experienced modest pullbacks.

In emerging markets, last week the losses were concentrated in China and Brazil. Braskem bonds fell sharply by up to 9.16% as the company acquisition negotiations unfold. Vanke Real Estate (Hong Kong) Co. Ltd. bonds declined by 3.05% after S&P affirmed its 'B-' rating with a negative outlook and Fitch downgraded it to 'CCC', reflecting heightened credit risks in the Chinese real estate sector. Grupo Televisa saw a modest 1.6% gain despite UBS lowering its price target, suggesting mixed investor sentiment. Tencent Holdings bonds dropped 1.55% as regulatory and geopolitical headwinds overshadowed its HKD 500 million share repurchase announcement.

In developed markets, last week Warnermedia Holdings bonds declined as the tender offers on its bonds are being considered by the investors. Equinor bonds rose slightly despite operational risks from potential offshore strikes, as the company executed share buybacks and announced board changes. Oracle bonds weakened despite strong Q4 results, possibly due to profit-taking.

Bond market news highlights of the last week include the US Federal Reserve maintaining the federal funds rate at 4-1/4 to 4-1/2 percent amid solid economic growth and elevated inflation, while geopolitical uncertainty and oil price surges created opposing pressures on bond yields. Additionally, the Bank of Japan announced plans to slow its balance sheet drawdown due to rising domestic yields, and Switzerland lowered its key interest rate, reigniting concerns about negative rates.

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