This site uses cookies to provide you with a great user experience. By using BondbloX, you accept our use of cookies.
Bond Market News
Mexico’s Bonds Trend Lower Following Draft 2024 Budget; Support for Pemex Only Directionally Positive, Says Fitch
September 12, 2023
Mexico’s dollar bonds traded weaker following the government’s 2024 draft budget, released late on Friday. The spending plan included $8.25bn of support for Pemex, and a proposed $18bn dollar-debt ceiling, 3x the $5.5bn limit this year. The increased spending is expected to widen the fiscal deficit to 4.9% of GDP, the largest since 1988. Losses were led by longer-dated bonds of the sovereign – its 6.338% 2053s were 1.2 points lower to 99.98 while its 4.35% 2047s were 1.0 points lower to 75 cents on the dollar, yielding 6.43%.
Meanwhile, Fitch said that the government’s proposed support for Pemex is “directionally positive”. However, the rating agency added that the quantum of funding does not fully address all of Pemex’s short-term capital needs. It said, “Fitch views the magnitude of announced commitments–as well as the lack of a longer-term funding commitment plan–as falling short of the total amount needed to give Pemex a sustainable capital structure.” Pemex’s 6.75% 2047s traded steady at 62.69 to yield 11.29%.
For more details, click here
Go back to Latest bond Market News
Related Posts:
BondbloX Pte. Ltd. is regulated by the Monetary Authority of Singapore as a Recognised Market Operator ("RMO") and exempted from Section 49(1) of the Securities and Futures Act (Cap. 289) ("SFA") under Section 49(7) of the SFA.