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Bond Market News
US-Iran Peace Talks Fail; SoftBank Prices € Notes
April 13, 2026
Risk-off sentiment has taken over this morning as tensions between the US and Iran have escalated after peace talks in Islamabad collapsed. The US military announced that it will begin blockading Iranian ports from Monday, while still allowing vessels not bound for or departing from Iran to transit the Strait of Hormuz. Iran’s Revolutionary Guard (IRGC) warned that military vessels approaching the waterway would be dealt with severely, though it clarified the strait remains open for civilian use. Meanwhile, Israel continued striking Lebanon while pressing a ground invasion in the country’s south.
US Treasury yields have risen across the curve by 5-6bp. On the data front, US CPI YoY for March rose by 3.3%, lower than surveyed 3.4% and higher than previous month’s 2.4%. The Core CPI came in at 2.6%, lower than surveyed 2.7% and higher than previous month’s 2.5%.
Looking at US equity markets, the S&P ended 0.1% lower while the Nasdaq moved higher by 0.4%. US IG CDS spreads widened by 0.8bp while HY CDS spreads were 3.1bp wider. European equity indices ended mixed. The iTraxx Main CDS spreads widened by 0.7bp and Crossover spreads were 3.2bp wider. Asian equity markets have opened in the red this morning. Asia ex-Japan CDS spreads were 0.4bp tighter.
New Bond Issues
- Beijing Capital $ 3Y at 6.9% area
Softbank raised €1.2bn via a two trancher. It raised €500mn via a long 6Y bond at a yield of 3.938%, 34.5bp inside initial guidance of MS+135/140bp. It raised €700mn via a long 10Y bond at a yield of 4.468%, 32bp inside initial guidance of MS+170bp area. The senior unsecured bonds are rated BBB/BBB+ (S&P/Fitch). Proceeds will be used for general corporate purposes.
New Bonds Pipeline
- CIMIC Group $ 10Y bond
Rating Changes
- Moody’s Ratings downgrades Greenko Energy Holdings’ ratings to Ba3; outlook stable
- Fitch Downgrades Air Baltic Corporation to ‘CCC-‘
- CPI Property Group Downgraded To ‘BB’ On Persistent Low Interest Coverage; Outlook Stable
- Moody’s Ratings changes Ghana’s outlook to positive from stable; affirms Caa1 ratings
- Nordstrom Inc. Outlook Revised To Positive On Improved Operating Performance; ‘BB’ Rating Affirmed
- Moody’s Ratings changes Province of New Brunswick’s outlook to negative, affirms ratings
- Moody’s Ratings places NOVA Chemicals Corporation’s ratings on review for upgrade
Term of the Day: Will Not Grow (WNG) Bonds
Bonds whose size is fixed and cannot be increased are called ‘Will Not Grow (WNG)’ or ‘No Grow’ bonds. Sometimes, issuers increase the final size of a deal to accommodate investor appetite. WNG bonds however have a fixed size and will not be increased. For example, green bonds often fall into this category as per the Climate Bonds Initiative (CBI). The CBI says that issuers need to show that there are enough green projects to match the amount that they intend to raise and for some, the number of suitable projects is limited. This according to them shows why green bonds tend to be smaller than vanilla bonds from the same issuer whereas for others there is more flexibility and the final size of the deal can be increased to accommodate investor appetite.
Last week, EFG International Finance (Luxemboug) raised €500mn via a 5Y WNG bond at a yield of 3.925%.
Talking Heads
On China’s Stocks, Bonds in Rare Sync as War Drives Haven Demand
Ming Ming, chief economist at Citic Securities
“As the renminbi strengthens, liquidity remains loose and China’s economy stabilizes and recovers, the appeal of Chinese assets continues to grow”
Xing Zhaopeng, ANZ Bank China
“The recent positive correlation is due to the headlines in the Middle East. The underlying logic may be that investors are tracking smart foreign money.”
On Bond Traders Snapping Back to Inflation as Higher-for-Longer Sets In
John Briggs, Natixis
“The pendulum does shift back to inflation… jobs market is stable at best and structurally it’s not very dynamic, but for now inflation is on the docket.”
Andrew Jackson, Vontobel
“In some ways the Fed’s job has been made marginally easier as they can say there is uncertainty about what will happen to inflation over the medium term”
Molly Brooks, TD Securities
“The Fed would need to see both the spike and a few reports of moderation before it would feel comfortable continuing to cut, in the absence of any growth deterioration”
On War Turning UK Bonds From Market Favorite Into Thorny Trade
Ales Koutny, Vanguard
“The UK has been the market most exposed to these volatile, violent, geopolitical-led moves… We still think the UK looks cheap, but right now you need much more stomach to take the volatility”
April LaRusse, Insight Investment
“For about a year gilts have been looking standout cheap… now have a situation where suddenly everything we were focused on is being questioned.”
Top Gainers and Losers- 13-Apr-26*
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