EM debt steady to higher in light trade; peso rallies with news of U.S.-Mexico trade deal

By Rebecca Melvin

New York, Aug. 27 – Emerging markets debt was steady to slightly higher in quiet trade on Monday as London’s financial players were closed for the summer bank holiday and market players eyed headlines regarding cobbling out a comprehensive trade agreement between Mexico and the United States.

A new trade deal between the neighboring countries was announced around midday in New York and cheered investors who sent Mexico’s currency higher – although bonds were mixed – and breathed life into global stocks as investors seemed to view the deal as a good sign for global trade overall.

The peso was 18.78 to the U.S. dollar, which was improved compared to 19.01 last Monday.

Petroleos Mexicanos SAB de CV’s 5.35% global notes due 2028 were down about 0.15 to 93.65. The Pemex 6.35% notes due 2048 were last 89.9, which was down a nickel, to yield 7.183%. The Mexico City-based oil and gas company issued both tranches for a combined $4 billion in January.

Mexican corporate Grupo Bimbo SAB de CV’s 4 7/8% notes due 2020 were up slightly to yield 5.304% with a dollar price of just under par.

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