EM LATAM CREDIT: Colombia Decree Constitutional Review
(COLOM; Baa2neg/BB+neg/BB+neg)
"Colombia Decree for Referendum to Be Sent to Court After Signing" - Bbg
The senate rejected the labor reform referendum recently proposed by President Petro so the President declared he would sign a decree ordering that the referendum be conducted which some people viewed as an attempt to circumvent democracy in the country.
Cabinet Interior Minister Benedetti, a Petro hand picked ally in the cabinet, declared that the decree would be sent to the constitutional court for approval and that the executive branch would comply with the court's decision.
As some have reportedly said the decree is unconstitutional we would think the decree could be rejected but Petro would be seen as doing everything he could to advance labor reform.
We expect attention to turn to the budget plan update in the coming days and away from this labor reform issue.
COLOM 8% 2035 notes were last quoted T+362bps, 2bps tighter QTD and 30 bps wider YTD.
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BUNDS: German 10yr Yield is nearing 2.50%
- Bund is still probing Monday's high of 131.24 (circa 2.5% in Yield), all very gradual, but Volumes have picked up a little, Schatz was bought in 10k, Bobl 5k.
- While extreme moves should still be limited ahead of the Fed, further upside traction opens to 131.71, followed by Friday's gap, up to 131.90 and the big one at 132.03.
- In Yield terms, next support comes at 2.43%, which equates to 132.01, close to that 132.03 level.
US: MNI POLITICAL RISK - Bessent Tees Up Trade Talks With China
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- President Donald Trump will receive an intelligence briefing in the morning before meeting Vice President JD Vance for lunch in the afternoon. Asian markets will be watching for a signal on how the White House will approach escalating hostilities between India and Pakistan.
- After upending transatlantic ties at the Munich Security Conference in February, Vance will speak at an event today hosted by the same organisation.
- Markets will be monitoring Trump’s Truth Social account for his response to the Fed's rate decision.
- Treasury Secretary Scott Bessent is on Capitol Hill again today to give his 'Annual Testimony' to the House Financial Services Committee. Bessent and USTR Jamieson Greer are aiming to dial down tensions with Beijing at their first official talks with Chinese counterparts this weekend.
- The US trade deficit rose in March as US businesses stockpiled goods.
- Trump struck a conciliatory tone with Canadian Prime Minister Mark Carney but downplayed the prospect of a trade deal.
- The budget ‘Big Six’ will meet at Treasury today as Republican leaders struggle to get moderates and conservatives on the same page on reconciliation spending cuts.
- Senate Majority Leader John Thune (R-SD) is expected to hold a Thursday vote on a landmark crypto bill.
- Trump announced a truce with the Houthis and teased a "very big announcement" ahead of his Middle East trip.
- Poll of the Day: The economy is a “liability” for Trump despite a stabilisation of his approval.
Full Article: US DAILY BRIEF
PIPELINE: Corporate Bond Roundup: Athene Global Funding 2Pt on Tap
- Date $MM Issuer (Priced *, Launch #)
- 05/07 $Benchmark Athene Global Funding 3Y +125a, 3Y SOFR
- $24.9B Priced Tuesday led by $5B BoA 3pt. Total issuance for the week at $38.7B
