EM LATAM CREDIT: Pemex: Corruption - Neutral
(PEMEX; B3neg/BBB/BB)
"MEXICAN PRESIDENT SHEINBAUM SAYS FORMER CEO OF MEXICAN STATE OIL COMPANY PEMEX CARLOS TREVINO HAS BEEN ARRESTED IN THE U.S., WILL BE DEPORTED" - Reuters
While these headlines are dramatic, it is not really news because Trevino was arrested almost 4 years ago for various charges including money laundering. Criminal conspiracy and bribery.
It would be more interesting to hear about current officials at the company and in government accused of corruption.
PEMEX 50s were last quoted USD85.69, unchanged today, 7 points higher QTD and 10 points higher YTD.
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US: Thune Downplays Trump's Rescissions Package Ahead Of Senate Voting
Senate Majority Leader John Thune (R-SD) has downplayed the broader implications of President Donald Trump's USD$9.4 billion rescissions package ahead of the first Senate votes on a request that has threatened to derail government funding negotiations. The first procedural vote could take place as soon as this evening, if Thune can get a handful of wavering Republicans onside.
- Thune said on the Senate floor that the House-passed recissions package has "a focus on woke and wasteful foreign aid dollars. We're going to consider that common-sense legislation this week." Thune added: "...incredibly, Democrats are melting down at the prospect of even the most minor cuts to federal spending. You'd think we are proposing to defund the entire government from the way they are talking."
- Senate Minority Leader Chuck Schumer (D-NY) said yesterday: "This rescissions package is certainly troubling, but the pattern behind it is even worse. It sets the stage for even more party-line devastating cuts for the future, to healthcare, education, anything Republicans decide they don’t like. All on a party line vote. All because of obeisance and fear of Donald Trump."
- Schumer last week explicitly tied the package to FY26 government funding, and with the appropriations process stalled, Thune will almost certainly require Democrat votes to pass a short-term measure to offset a government shutdown in October.
- Polymarket currently shows a conservative 40% chance of a government shutdown in 2025, reflecting conventional wisdom that Democrats will not allow a shutdown despite having few other options for leverage.
US TSY OPTIONS: BLOCK: Sep'25 30Y Puts/Split
- total 22,500 USU5 108 puts, 28-29 vs. 112-09/0.16% at 1031:00ET
FRANCE: Bayrou Scraps 2x Public Holidays - As Reported Prior
As reported beforehand: "FRENCH PM: TWO DAYS OF PUBLIC HOLIDAYS WILL BE SCRAPPED AS PART OF 2026 BUDGET SAVINGS DRIVE" Reuters
Additional headlines of note:
- "FRENCH PM: WE WILL CALL ON TAXPAYERS WHO CAN MAKE A BIGGER EFFORT TO DO SO BY LIMITING CERTAIN TAX BREAKS" Reuters
10-year OAT/Bund spread remains steady at 69.5bps.
