Cbonds: Global Bond Market

💼 #CbondsWeekly. All the latest updates in the world of Eurobonds. Last week, US Treasury yields rose across the curve, with the 2Y up 13bp to 4.76%, the 5Y up 8bp to 4.86%, the 10Y up 5bp to 5.01%, and the 1Y up 9bp to 4.44%. Regional Cbonds USD price indices showed broad-based increases in yields, with corporate and sovereign indices in the Middle East and Africa rising the most, while Asia sovereign yields were flat, highlighting a divergence between higher-yielding regions and Asia. Stock market indices were mixed, with the NASDAQ 100 up 0.94% and the Nikkei 225 up 1.57%, while the Dow Jones fell 1.69% and the Russell 2000 dropped 1.50%. The US dollar strengthened against most core currencies, gaining 0.99% against the euro, 0.98% against the pound, and 2.19% against the yen, though it edged down 0.16% against the yuan. Key commodities were mostly lower, with Brent crude down 0.71% and the S&P GSCI down 0.39%, while gold rose 0.76% and silver gained 3.07%. In emerging markets, last week Banco do Brasil bonds led the declines with a 3.66% drop after J.P. Morgan cut the bank's profit forecasts and lowered its price target, citing rising delinquency and a weaker earnings outlook. YPF bonds also fell 2.40% despite completing a $1.2 billion bond sale to refinance 2027 and 2029 notes, as the new issuance weighed on secondary prices. Suzano and Sabesp bonds declined 1.86% and 1.76% respectively, with Sabesp pressured by a nearly R$30 million fine from Arsesp for operational failures and unmet sanitation targets, though Goldman Sachs said the weakness created a buying opportunity. On the positive side, SABIC bonds rose 3.09% following the award of a $3.47 billion EPC contract for a fertilizer complex, and Tencent bonds gained 1.22% on fresh share buybacks and revenue growth. In developed markets, last week JetBlue Airways bonds saw the sharpest decline after a proposed class-action lawsuit alleged the airline charged extra for unavailable free seat selection, while Goldman Sachs maintained a Sell rating with a $4 target. CoreWeave bonds also fell following the company's $3 billion convertible notes raise and a 35 million-share at-the-market program. Virgin Media O2 financing bonds declined amid leadership restructuring and reported cost-reduction efforts at the company. On the upside, Eni bonds rose as second-quarter net profit doubled and analysts reiterated Buy ratings, while Aon North America bonds gained after completing a $13.4 billion senior notes offering to fund its USI acquisition. Fannie Mae bonds advanced after the FHFA directed it to align its PMI cancellation policy with Freddie Mac, and Hydro-Quebec bonds weakened on a lawsuit from Massachusetts utilities over an alleged power-delivery breach. Bond market news of the last week include a rattled bond market with increasingly attractive yields that could signal a shift away from equities, the oil market's outsized role in driving inflation and interest rates, and the 30-year Treasury yield hitting a 19-year high that benefits life insurers reinvesting at those rates for decades. Research coverage featured a Federal Reserve study on estimating yield impacts of Treasury demand and supply changes, Erste Group's note on persistent labor market resilience in Central and Eastern Europe, and Valens Research's analysis of Ralph Lauren's turnaround with Uniform ROA rising from 4% to 13%. 📥Find this and more in our Research Hub → www.cbonds.com/comments/