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

Last week, the US Treasury yields showed mixed movements, with the 2Y yield rising by 3 bps while the 10Y yield declined by 4 bps, reflecting a slight flattening of the curve. The Regional Cbonds USD price indices exhibited broad strength, particularly in the sovereign segments, with Africa and Latin America leading the gains, while corporate indices also advanced across all regions.

In emerging markets, last week Pakistan's Water & Power Development Authority (WAPDA) bonds rose 4.52% as the stabilization of Pakistan’s foreign reserves prompted a sovereign rating upgrade by S&P. Pemex bonds gained 4.12% as Fitch placed the company on Rating Watch Positive following a government-backed liability management announcement. Grupo Televisa bonds climbed 3.54% after a Q2 profit rebound, cost-cutting progress, and analyst upgrades. Conversely, Braskem bonds fell sharply by 9.36%, continuing the last week’s tendency, while Alpek bonds dropped 0.81% due to weaker-than- expected Q2 earnings and rising net debt.

In developed markets, last week Teck Resources bonds declined by 1.95% as higher copper capex guidance and analyst price target cuts overshadowed its earnings beat. TELUS bonds gained 1.84% despite bearish sentiment around its upcoming earnings decline. Ford Motor bonds rose 1.81% ahead of its earnings report, while ZF Friedrichshafen bonds increased 1.80% as tariff dispute uncertainties elevated risk premiums. Vodafone Group bonds climbed 1.75% following strong Q1 results and a completed merger of UK operations with Three. TotalEnergies bonds advanced 1.69% after confirming a dividend hike and $2B buyback. Intel bonds dropped 0.71% due to a wider-than-expected loss and strategic uncertainty over its potential foundry business exit.

Bond market news and Research Hub highlights of the last week include developments around the Federal Reserve's upcoming policy decision, with expectations for rates to remain unchanged amid political pressure from President Trump. The ECB held interest rates steady for the first time since July 2024, though a final rate cut remains possible due to subdued wage growth and disinflationary pressures. In China, authorities are intensifying efforts to address industrial overcapacity and tighten regulation on aggressive price competition, while updates on the local governments debt resolution show slowing growth in off-balance-sheet debt. In Japan, speculation is growing around a potential BoJ policy shift, with JGB yields trending higher and fiscal concerns possibly influencing the long end of the curve.

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