Source: Bloomberg Finance L.P.
Measure Level Δ DoD
5yr UST 3.98% +3bp
10yr UST 4.41% +3bp
5s-10s UST 42.6 +1bp
WTI Crude 68.4 +0.4
Gold 3304 -32.1
Bonds (CBBT) Z-Sprd Δ DoD
ARGENT 3 1/2 07/09/41 910bp +8bp
BRAZIL 6 1/8 03/15/34 246bp +0bp
BRAZIL 7 1/8 05/13/54 348bp +1bp
COLOM 8 11/14/35 404bp +3bp
COLOM 8 3/8 11/07/54 476bp +8bp
ELSALV 7.65 06/15/35 417bp +2bp
MEX 6 7/8 05/13/37 254bp +1bp
MEX 7 3/8 05/13/55 317bp +1bp
CHILE 5.65 01/13/37 147bp +2bp
PANAMA 6.4 02/14/35 291bp -0bp
CSNABZ 5 7/8 04/08/32 571bp -4bp
MRFGBZ 3.95 01/29/31 273bp -3bp
PEMEX 7.69 01/23/50 591bp +6bp
CDEL 6.33 01/13/35 198bp -2bp
SUZANO 3 1/8 01/15/32 166bp +1bp
FX Level Δ DoD
USDBRL 5.45 -0.04
USDCLP 941.86 -1.39
USDMXN 18.6 -0.06
USDCOP 4050.75 +7.25
USDPEN 3.55 -0.02
CDS Level Δ DoD
Mexico 104 0
Brazil 146 1
Colombia 220 5
Chile 55 1
CDX EM 97.54 (0.01)
CDX EM IG 101.25 0.01
CDX EM HY 93.70 0.01
Main stories recap:
Comments
Closing Comment
· Equity indexes trended lower while U.S. Treasury yields moved higher as President Trump announced a 50% tariff on copper imports and plans to raise pharmaceutical tariffs as well.
· The EM primary market remained active despite the heightened tariff risk with Asia printing one financial while CEEMEA offered 2 new issues and a sovereign mandate.
· The EM secondary market was off to a good start in Asia with benchmark bond spreads tightening a few bp but more mixed in CEEMEA with a -5/+5 move and then wider for Latam in a +1-8bp range.
· Bonds of Brazil chemical company Braskem underperformed moving about a point lower with businessman Nelson Tanure seeking approval from regulatory authorities to proceed with his bid for a large stake in the company.
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JGBs have rallied off recent lows, however a bearish theme remains intact following the reversal that started Apr 7. A continuation lower would signal scope for an extension towards 136.57, a Fibonacci projection. On the upside, a reversal higher would instead refocus attention on 142.95, the Apr 7 high. The first important resistance to watch is 141.48, the May 2 high. A break of this level would be viewed as an early bullish signal.
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