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

Last week, the US Treasury yields declined across all maturities, with the most significant decreases observed in the 2-year (-0.17 pp) and 5-year (-0.13 pp) tenors, while the 10-year yield fell modestly by -0.09 pp. Regional Cbonds USD price indices showed broad-based gains, with Latin America and Africa leading in both corporate and sovereign segments, while Asia and the Middle East posted more moderate but positive returns.

In emerging markets, Vedanta Resources rose 3.6% after its promoter entities secured a $600 million loan facility, while Grupo Televisa gained 3.14% following its prepayment of a $2.65 billion bank loan. Vanke Real Estate bonds rose 6.67% amid management turmoil and a massive Q1 net loss. On the downside, the top losers list is dominated by the Latin American issuers.

In developed markets, last week Warnermedia Holdings bonds remained in the red following the announcement of pricing for cash tender offer on its notes and a Fitch downgrade to BB+ amid elevated leverage concerns and ongoing strategic reorganization. Equity upgrades to buy/strong-buy by Goldman Sachs, HSBC, Kepler Capital Markets led the price gains of Bayer debt securities. Teck Resources bonds gained 2.47% owing to the positive analyst sentiment. AI Candelaria bonds fell 0.52% after Fitch revised its outlook to negative over leverage concerns at OCENSA (due to structural subordination of its obligations to OCENSA's creditors).

Bond market news highlights of the last week include a rally in emerging market debt from Brazil, India, and Indonesia due to higher real yields and inflation resilience, rising interest rates on German government bonds driven by new debt plans, and growing speculation of a Fed rate cut in July amid dovish signals and cooling inflation.

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