EM debt little changed; Hungary plans Panda bond; Mexico City Airport bonds edge upward

By Rebecca Melvin

New York, Dec. 10 – Emerging markets debt was mostly flat in quiet action on Monday as U.S. Treasuries started the session weaker but firmed and equities slid and then rebounded into the market close in the United States. Commodities were under pressure.

In the early going, global investors reacted negatively to news that British prime minister Theresa May delayed a parliamentary vote on her government’s Brexit bill, a decision that throws more uncertainty on global growth prospects next year. May said the decision was based on concerns regarding how to manage Northern Ireland’s border with the Republic of Ireland.

“Everything was pretty flat, which was a little surprising given the negative sentiment in equities, but credit held up,” a London-based market source said.

Hungary announced plans to issue a renminbi-denominated offering of bonds, mandating Bank of China and HSBC to arrange the issue, a market source said on Monday.

The country was last in the Chinese interbank bond market in July 2017, when it issued RMB 1 billion of 4.85% three-year notes.

Meanwhile, Mexico City Airport bonds recovered slightly on reports that bondholders are demanding that the government guarantee payments on outstanding notes and use passenger fees from other airports as collateral.

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