EM LATAM CREDIT: Petrobras: Retail Fuel Sector - Neutral

• Date $MM Issuer (Priced *, Launch #)
• 06/17 $5B *EIB 7Y SOFR+50
  06/17 $3.5B #Hyundai Capital AM: $1B 2Y +93, $400M 2Y SOFR+112, $1B 3Y +103, $600M 5Y +112, $500M 7Y +127
• 06/17 $3B #UnitedHealth $500M 3Y +52, $750M +5Y +70, $1B 10Y +92, $750M 30Y +112
• 06/17 $3B *KFW 2Y SOFR+26
• 06/17 $2B #Enterprise Products $500M 3Y +45, $750M +5Y +65, $750M +10Y +85
• 06/17 $675M Islamic Development Bank Sukuk 5Y SOFR+58a

• US rates have seen their twist flattening accelerate (SFRZ5/Z6 -4.5 ticks) as oil futures continue to push higher (WTI +3%) on geopolitical tensions.
• Fed Funds implied rates are 1.5bp higher for the Dec’25 meeting for session highs and within 3.5bp of pre-CPI levels that had been their most hawkish since February.
• Cumulative cuts from 4.33% effective: 0bp for tomorrow, 3bp Jul, 17.5bp Sep, 29.5bp Oct and 45.5bp Dec.
• The SOFR implied terminal yield of 3.29% (SFRZ6, -3bp) last closed lower on Jun 12 and Jun 4.
• Trump is set to decide today on joining the Iran conflict having earlier called for unconditional surrender and Iran calling on Israelis to evacuate Haifa and Tel Aviv.
• Axios' Ravid has noted that: “The U.S. officials said Trump is seriously considering joining the war and launching a U.S. strike against Iran's nuclear facilities, especially its underground uranium enrichment facility in Fordow.”

RRP usage bounces to $168.939B this afternoon from $140.759B yesterday, total number of counterparties at 37. Usage had fallen to $54.772B on Wednesday, April 16 -- lowest level since April 2021. Conversely, usage had surged to the highest level since December 31, 2024 on Monday, March 31: $399.167B.