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US Steel’s bonds were trading lower across the curve after reports emerged claiming that US President Joe Biden was expected to release a statement of concern about Nippon Steel’s proposed purchase of the American steelmaker. Nippon Steel had proposed a $14.9bn all-cash acquisition of US Steel for $55/share. Sources noted that it was not clear what Biden would say on the deal, and how far he would go as his administration has sent warnings about it in the past. Concerns over national security have emerged, though Japan is an ally of the US, besides other concerns regarding a threat to unionized steel jobs. Nippon’s bid is set to be reviewed by the Committee on Foreign Investment in the US.
US Steel’s 6.875% 2029s were down 0.5 points to 101.27, yielding 6.57% and its 6.65% 2037s fell 2.2 points to 101.66, yielding 6.46%. US Steel’s share price dropped by 12.8% to close at 40.86.
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