MNI EM Credit Weekly

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EXECUTIVE SUMMARY

Spread moves were mixed. In CEEMEA, Turkish courts’ adjourning the opposition’s court case to 24 Oct set the tone for a more stable week. In Asia, benchmark spreads tightened as issuers stayed cautious before the FOMC decision. Indonesia surprised the market with a 25bp rate cut to 4.75% despite ongoing rupiah volatility. In Latam, Argentina bonds fell 7pt as scepticism about the viability of President Milei. Next week we have rate decisions from the Hungarian and Czech CBs. In Asia, we may see a deal from Chinese property developer Seazen, which would be an important signal for real estate. In Latam, President Trump may react to the 27-year sentence for convicted Brazil ex-President Bolsonaro with higher tariffs and sanctions.