LatAm Bonds

The euro market has been devoid of syndicated issuance from the sovereign, supranational and agency community this week as inflation fears intensified and Bunds rose to their highest level since the credit crisis took hold, the 10 year trading at around 4.46% yesterday (Thursday).

The Republic of Italy’s return to the dollar market after a one year absence was a resounding success, despite being issued in the throes of a sharp sell-off in Treasuries as stocks rallied and fears intensified of a rate hike to fend off inflation.

Latin American investment grade issuers Pemex and BNDES met liquid demand this week and priced a total of $2.5bn of bonds at the tight end of guidance.

Uruguay and the World Bank launched a groundbreaking local currency transaction on Wednesday when the borrower became the first foreign issuer to launch a public bond in Uruguayan pesos.