#CbondsWeekly. All the latest updates in the world of Eurobonds.

Last week, US Treasury yields declined across the curve, with the 10-year yield falling 4 basis points, as a temporary ceasefire in the Middle East helped ease some inflation concerns. Regional USD bond indices saw yields compress, with sovereign indices, particularly in Africa and the Middle East, showing a more pronounced weekly tightening than their corporate counterparts. Global stock markets rallied, led by the Nikkei 225 and US tech indices, amid a broader relief rally. The US dollar weakened against core currencies like the Euro and British Pound. Key commodities were mixed, with Brent crude oil prices falling sharply on the week while silver gained.

In emerging markets, last week saw notable price movements driven by specific corporate and sectoral developments. Bonds of SQM (Sociedad Quimica y Minera de Chile) rose as Bank of America and Berenberg raised earnings forecasts, supported by a lithium price rally due to supply cutbacks. Conversely, Aegea Saneamento e Participacoes bonds declined following the company's closure of a R$225 million debenture sale for development. Qatar National Bank bonds also softened as its third-quarter net profit slipped due to higher provisions, amid mixed Gulf market sentiment linked to oil weakness.

In developed markets, last week, bond prices for CoreWeave rose following the announcement of a major $21 billion AI infrastructure deal with Meta and an upsized convertible notes offering. Aptiv's bonds also gained after the company accepted a cash tender offer for a portion of its 2032 notes. Conversely, Teck Resources saw its bond prices decline amid market concerns over stock valuation and ahead of its upcoming earnings report.

Bond market news and Research Hub highlights of the last week include a focus on persistent geopolitical tensions in the Middle East, which continue to drive inflation expectations and bond yields despite a temporary ceasefire. Research indicates that while markets have reacted to these shocks, historical patterns suggest they are resilient, even as the situation strains a fragile truce and keeps oil prices volatile. Additionally, bank stocks are viewed as potentially undervalued ahead of earnings, offering a potential reset after a weak quarter.