EM LATAM CREDIT: Potential Changes to JPM EM Bond Index
"JPMorgan Considers Cutting China, India Share in EM Bond Index" - Bbg
Potentially increasing the weight for some other issuers as JPM seeks to offer an index that is more diversified by issuers.
Latin American issuers could benefit, especially Brazil and Colombia according to a Bloomberg report citing documents of the proposal.
The amendments seem to be for the GBI-EM Global Diversified index, the benchmark for local-currency EM debt. This could be especially supportive for Colombia that has had larger fiscal deficits that will require increased local debt issuance.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
US 10YR FUTURE TECHS: (U5) Bearish Threat Remains Present
- RES 4: 111-30 76.4% retracement of the May 1 - 22 downleg
- RES 3: 111-19+ 1.0% 10-dma envelope
- RES 2: 111-14+ High Jun 5 & 61.8% of the May 1 - 22 downleg
- RES 1: 110-20 50-day EMA
- PRICE: 110-06+ @ 16:50 BST Jun 10
- SUP 1: 109-26 Low May 29
- SUP 2: 109-12+ Low May 22 and the bear trigger
- SUP 3: 109-09+ Low Apr 11 and key support
- SUP 4: 108-25+ 0.764 proj of the Apr 7 - 11 - May 1 price swing
The recent reversal lower in Treasury futures, undermines the current bullish theme. An extension down would expose support at 109-26, the May 29 low, where a break would open key support and the bear trigger, at 109-12+, the May 22 low. Key short-term resistance has been defined at 111-14+, a Fibonacci retracement and the Jun 5 high. Clearance of this hurdle would be bullish.
OPTIONS: Larger FX Option Pipeline
- EUR/USD: Jun12 $1.1350(E1.9bln), $1.1395-00(E1.3bln), $1.1425-35(E1.4bln), $1.1440-50(E2.6bln), $1.1500(E2.2bln); Jun13 $1.1400-05(E1.7bln), $1.1485-00(E1.9bln); Jun16 $1.1400(E1.2bln)
- USD/JPY: Jun12 Y143.00($1.3bln), Y143.85-00($1.0bln); Jun13 Y144.00($1.2bln); Jun16 Y145.00($4.4bln)
- AUD/USD: Jun12 $0.6475-85(A$1.1bln)
UK: POLITICAL RISK - Spending Review 2025
Download Full Report Here
MNI's Political Risk team has published an article looking at the political implications of tomorrow's Spending Review, particularly in the context of the Labour government's challenge from the right-wing populist Reform UK in opinion polls.
