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

Last week, US Treasury yields declined across the curve, with the 2-year yield falling 10 basis points to 3.71% and the 10-year yield dropping 5 basis points to 4.26%. Regional Cbonds USD price indices saw yields compress across both corporate and sovereign segments, with the most pronounced weekly tightening observed in Latin American sovereign debt. Global stock market indices, including the S&P 500 and NASDAQ 100, posted gains, continuing their positive momentum. The US dollar weakened against other core currencies, as evidenced by a decline in the US Dollar Index. Key commodities were mixed, with Brent crude oil prices falling over 5% while gold and silver prices advanced.

In emerging markets, last week Brazilian bonds saw notable divergence. Cia Siderurgica Nacional (CSN) bonds posted a strong gain, supported by S&P affirming its BB- rating with a stable outlook, though this was partially offset by a Moody's downgrade to Ba3. BRF bonds also advanced significantly after both Fitch and S&P revised their outlooks to positive, affirming BB+ and BB ratings respectively. Conversely, Suzano bonds declined due to escalating geopolitical tensions and rising pulp supply chain costs, which pressured investor sentiment regarding future profitability.

In developed markets, last week, Mercer International bonds saw a sharp decline after RBC cut its price target and added speculative risk to the issuer. Shell bonds also weakened, pressured by lower oil prices following the reopening of the Strait of Hormuz, a downgrade from BNP Paribas, and a trimmed Q1 gas output forecast. Conversely, Oracle bonds posted gains, though no specific news drove the move. Aptiv bonds declined amid negative sentiment following its Electrical Distribution Systems spin-off, which caused its stock to lag the broader market.

Bond market news and Research Hub highlights of the last week include a focus on geopolitical developments and their market implications, with optimism for a Middle East ceasefire supporting stable bond yields, while rising energy prices and U.S. fiscal stimulus are seen as offsetting forces for growth and inflation. Defense stocks are highlighted for significant gains amid surging military budgets, and research notes point to elevated consumer sentiment risks and political uncertainties in Europe adding to market volatility.