MNI EM Credit Weekly

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EXECUTIVE SUMMARY:

Emerging Markets were strong last week, with USD index spreads tightening 10.7bp to reach new year-to-date lows. In Asia, economic data from China points to a slowdown due to tariffs, a possible a negative read for the region, while India was upgraded by S&P despite ongoing US tariff pressures. In CEEMEA, focus remains on the upcoming US-Russia talks over Ukraine, which could influence regional spreads. In Latin America, the threat of Braskem debt restructuring eased amid reports that distressed debt investor Nelson Tanure may retract his bid. Overall, with low supply and reduced geopolitical tensions, spreads are expected to remain anchored near year-to-date tights.