Weekly Updates

• EM credit spreads widened modestly as renewed Middle East tensions and higher oil prices triggered a risk-off tone, with EM high yield underperforming investment grade.
• EM bond fund inflows accelerated to US$898mn, supported by strong demand across both hard-currency and local-currency debt despite geopolitical volatility.
• Carry remains the dominant investment theme as repeated bouts of spread widening continue to attract dip buyers and preserve most second-quarter gains.
• Oil-exporting sovereigns and credits generally outperformed on higher crude prices, while importers and politically sensitive markets faced pressure.
• A heavy sovereign issuance pipeline and elevated geopolitical risks remain the primary near-term challenges for EM credit markets.

Market Visualizer

Weekly Snapshot: Key Drivers & Regional Flows

Regional Credit Developments

Global EM Themes

• EM bond fund inflows strengthened to US$898mn from US$715mn the prior week, with hard-currency funds attracting US$459mn and local-currency funds receiving US$438mn.
• ETF allocations accelerated to US$575mn, indicating investors continued adding EM exposure despite rising geopolitical risks.
• Asia ex-Japan bond funds returned to positive territory with US$62mn of inflows after posting outflows the previous week.
• Frontier local markets and traditional high-yield sovereigns remained among the best-performing EM segments as investors continued to favour carry opportunities.

• Escalation in US-Iran tensions, including threats to Gulf and Red Sea energy routes, pushed oil prices toward the high-US$80s/bbl range and drove a broader risk-off tone.
• Higher oil prices generally supported commodity-exporting sovereigns while increasing macro pressures on oil-importing economies.
• EM Aggregate spreads widened 4.65bp during the week, although market weakness remained orderly rather than disorderly.

Regional Developments

• MENA credits broadly underperformed as widening CDS levels and weaker cash-bond performance weighed on markets including Egypt, Bahrain, Türkiye and Pakistan.
• Egypt was among the weakest performers, with sovereign bonds falling roughly 0.75-2.13 pts and 5-year CDS widening 21bp amid geopolitical concerns and risk-off flows.
• Kenyan sovereign bonds declined around 1.25-1.75 pts despite discussions regarding a potential US$500mn Eurobond buyback.
• Senegal recovered after reports that a debt adviser had been appointed, though investor focus remained on debt sustainability and restructuring outcomes.
• Higher oil prices supported credits linked to Gabon, Angola, Mozambique and other oil-exporting economies, helping them outperform regional peers.
• Investor attention also focused on strategic developments in Angola, governance discussions in South Africa and ongoing debt-related developments across several frontier markets.

• Romania faced pressure from renewed political uncertainty and election-related headlines before recovering later in the week.
• Serbia weakened following a €500mn private placement of a new 2032 Eurobond, although buying interest later emerged at wider spread levels.
• Ukraine remained highly volatile as initial selling was followed by a short squeeze before risk managers and hedge funds re-sold the rally.
• Market participants closely monitored political reshuffling and ongoing restructuring developments involving key state-linked entities.
• CEE remained one of the most active issuance regions, with upcoming local-currency auctions scheduled across several sovereign markets.

• Latin American sovereigns generally proved more resilient than CEEMEA markets despite heightened global volatility.
• Brazil outperformed and finished unchanged to slightly tighter even after headlines related to new tariff measures on selected exports.
• Colombia benefited from fiscal-reset discussions and IMF-related technical assistance developments.
• Argentine warrants recorded trading volumes exceeding US$200mn, while sovereign bonds ended modestly lower amid local supply and mixed investor positioning.
• Corporate credit conditions softened as downgrades continued to outpace upgrades and profit-taking pressure emerged within tightly valued investment-grade issuers.

• Carry continued to support Asian credit markets, helping offset the impact of geopolitical headlines and broader risk-off sentiment.
• Asia remained the largest contributor to EM corporate issuance, accounting for approximately US$133bn of the US$312bn issued year to date.
• High-yield credits continued to outperform, with ongoing investment-grade versus high-yield spread compression observed across EM markets.
• Local-currency bond issuance remained active across major markets including China, India, Indonesia, South Korea, the Philippines, Malaysia and Thailand.

Primary Markets

• The sovereign issuance calendar remains heavy, with market participants monitoring transactions across the Middle East, Africa, Latin America, Eastern Europe and Asia.
• Several frontier and high-yield sovereign borrowers are expected to remain active, creating an important test of investor appetite amid elevated geopolitical uncertainty.
• EM corporate issuance remained resilient despite seasonal factors, with full-year issuance expectations approaching US$460bn.
• Primary market activity continues to be supported by healthy global liquidity conditions and persistent demand for carry-oriented assets.

DISCLAIMER

This document is strictly confidential and is being provided to you for informational purposes only. It does not constitute an offer to sell or a solicitation of an offer to buy any securities or financial instruments. The information contained herein has been obtained from sources believed to be reliable but is not guaranteed as to accuracy or completeness. Opinions and estimates constitute our judgment as of the date of this material and are subject to change without notice.

AI Generation Notice: Portions of this content may have been generated or assisted by Artificial Intelligence (AI) technologies. Users should independently verify critical data points. Past performance is not indicative of future results.

Executive Summary: During the week of 13–17 July, EM credit markets experienced choppy trading with EM Agg ending +4.65bp wider and EMHY underperforming EMIG. Middle East escalation dominated, with US–Iran strikes and Iranian/Houthi threats driving oil toward the high-$80s and widening MENA CDS. Egypt and Bahrain were clear underperformers in MENA, while oil exporters Gabon and Mozambique outperformed importers. LatAm sovereigns proved relatively resilient, with Argentina completing a $4.3bn bond payment and Peru’s May economic activity contracting 1.1% m/m.

Market Visualizer

Regional Credit Developments

🌍 EM Ex-Asia Credit

• EM Agg / EMHY / EMIG: EM Agg index ended week +4.65bp wider; EMHY underperformed EMIG at +6bp versus +4bp; CDXEM45 closed down 24c on the week.
• MENA / Middle East: Regional risk elevated amid US–Iran strikes and Iranian/Houthi threats around Gulf and Red Sea energy routes; oil prices moved toward high-$80s per barrel; MENA CDS widened, particularly for Egypt, Bahrain, Turkey and Pakistan.
• Egypt: Sovereign bonds traded -75c/-2.13pts on the week; Egypt 5y CDS widened +21bp WoW.
• Bahrain: Sovereign curve traded weaker amid broader MENA HY risk-off and active cash/CDS flows.
• Kenya: Kenya is considering buying back up to $500mn of Eurobonds to extend maturities and ease repayment pressures; KENINT curve closed -1.375/-1.25pts WoW; headlines also included extension of reduced fuel VAT and expectations for FX reserves to rise from Safaricom divestiture proceeds and World Bank funding.
• Senegal: Creditors began informal talks on potentially forming a group if government proceeds with debt rework; Debtwire reported Senegal is appointing Lazard as debt adviser; public-sector debt cited at 128.6% of GDP; SENEGL curve closed flat/+1.0pts WoW, outperforming SSA.
• Gabon: Oil exporter outperformer with bonds +75c/+88c on the week; Gabon oil curve saw buying interest alongside higher oil prices.
• Mozambique: President Daniel Chapo said in Friday Bloomberg interview that country is making progress toward debt-restructuring deal with China similar to Brazil agreement and is seeking new IMF program this year; MOZAM bonds ended +0.25pts WoW.
• Nigeria / Angola / Gabon oil curves: Oil curves saw buying interest during week as higher oil prices supported sector performance.
• Romania: Sovereign bonds widened early in week amid renewed political deadlock and early-election headlines, then recovered into week-end.
• Serbia: Issued new 6y €500mn Eurobond at 4.75% via private placement on Monday; new bonds trading around reoffer; existing SERBIA bonds were -1.0/-0.875pts lower on the week.
• Ukraine: Trading was volatile with early selling in the Bs, squeeze higher on street shorts, then renewed RM/HF selling; President Zelenskyy named Naftogaz CEO Sergii Koretskyi as next prime minister; Zelenskyy ousted defense minister Mykhailo Fedorov, prompting Kyiv protests; Naftogaz announced restructuring of approximately €1.2bn of Eurobonds; UKRAN curves were 1.20/1.50pts below intra-week highs and closed at A +0/+0.375pts, B -0.25/+0.375pts, C +0.25pts.
• Kernel: Kernel Holding reported that combined Russian missile and drone attacks on nights of 10–11 July and 11–12 July caused significant damage to port infrastructure in Chornomorsk and disrupted operations; assessment of damage, losses and required capex ongoing; KERPW bonds unchanged WoW.
• airBaltic: Company announced bondholder general meeting on 3 August to propose interim financing, capitalizing upcoming coupons, and loosening Trust Deed meeting/quorum mechanics to accelerate restructuring; AIRBAL bonds down -10pts on week.
• Peru: Central Bank data released Wednesday showed economic activity in May contracted 1.1% m/m sa, the weakest since March and below Bloomberg consensus; decline concentrated in fishing and related manufacturing; PERU curve widened +2/+4bps WoW; Peru 5y CDS ended unchanged.
• Argentina: Completed $4.3bn payment on USD-denominated bonds; June inflation rose 1.9% m/m, third consecutive monthly slowdown and lowest since August, slightly below Bloomberg consensus of 2%; EUR warrants saw over $200mn of trading and RM demand, closing +30c WoW; secondary sovereign curve closed -0.375/-0.125pts on week and 5y CDS unchanged WoW.
• Aeromexico: Reported 2Q26 results with adjusted EBIT margin of 4.6%, within 4–7% guided range and below Bloomberg consensus of 5.7%; margin contracted 3% YoY from higher jet fuel costs, partial fare readjustment and World Cup-related demand impact in June; company stated it recaptured 75% of fuel cost increase, versus prior guidance of 50%; AEROMX bonds -1.0/-0.50pts WoW.
• Brazil ethanol blending policy: Parliament approved increase in ethanol blend in domestic gasoline to 32% from 30% on Tuesday for 180 days with possibility of one 180-day extension; measure could add up to 1bn liters per year of ethanol demand; Mines and Energy Ministry stated decision aims to reduce reliance on imported fossil fuels amid volatile global oil and fuel markets; FSBIOE bonds -0.625pts WoW reflecting Fitch downgrade impact; RAIZBZ bonds -0.375pts WoW.
• Braskem: Economico reported Wednesday that bondholders including Elliott Investment Management and Strategic Value Partners presented restructuring proposal involving dilution of current shareholders; BRASKM bonds down -5/-4pts WoW under severe pressure.
• MV24 / MVFPSO: Fitch upgraded MV24 to BBB- from BB+ with Stable outlook Wednesday, citing improved sovereign and Petrobras credit quality, better transaction performance metrics and DSCRs; MVFPSO bonds +0.75pts WoW.
• Cosan: Moody’s downgraded from Ba3 to B1 with Negative outlook, following S&P downgrade last week; action concluded review for downgrade initiated 24 February after Raizen S.A. announced restructuring and related uncertainties; CSANBZ bonds -0.50pts WoW.
• CSN: Debtwire reported Thursday CSN remains in discussions with 2028 bondholders on exchange into new amortizing 2030 bonds with 9%+ coupon; resolution could depend on cement stake sale progress; CSN’s $1.2bn bridge loan coupon would increase 100bps if 2028 bond refinancing not completed by end-August; CSNABZ bonds -1.0pts/flat WoW.
• Movida: Released preliminary 2Q26 results Thursday with net income of BRL136mn, more than double year-ago and above market consensus; MOVIBZ bonds -0.375pts WoW.
• Ecopetrol / Brava Energia / 3R Petroleum: Brava Energia announced Thursday that Brazil’s securities regulator lifted suspension of Ecopetrol’s Brava Energia takeover bid, allowing tender offer to proceed; ECOPET curve unchanged on week; RRRPBZ bonds +0.75pts WoW.
• Petroperu: Debtwire reported 13 July that Petroperu is nearing access to first $500mn of financing line following establishment of special purpose vehicle; Chairman expects funding backed by government guarantee of up to $2bn under Emergency Decree 003-2026 with regaining access to financing and supplier credit; no exact disbursement date specified; PETRPE bonds +1.375/+1.625pts WoW.
• Brazil oil sector / PETBRA / CFELEC: Brazilian oil-related sovereign and corporate curves saw buying interest over week amid higher oil prices; PETBRA and CFELEC outperformed earlier in week as LatAm corporates experienced selling pressure in recent new issues and metals/mining.
• Uruguay: Sovereign underperformed among LatAm IGs over the week.
• Colombia: Sovereign performance supported by headlines on IMF and US Treasury technical assistance related to fiscal reset.
• SoftBank Group: S&P revised SoftBank Group outlook from Negative to Stable Thursday, citing sharp rise in Arm share price since end-March 2026; SoftBank Group equity closed week -14.9% impacted by weaker AI sentiment in US/Asia; SOFTBK senior unsecured bonds -1.0/-0.375pts WoW and subordinated bonds -1.25/-0.75pts WoW.

🇨🇳 Asia Credit: China Property & HY

• No material developments reported this week.

🌏 Asia Credit: Frontier & Sovereign

• Pakistan: CDS widened during week in context of broader MENA and Frontier sovereign risk repricing and higher oil prices.
• Turkey: CDS widened during week in context of broader MENA and Frontier sovereign risk repricing and higher oil prices.

DISCLAIMER

This document is strictly confidential and is being provided to you for informational purposes only. It does not constitute an offer to sell or a solicitation of an offer to buy any securities or financial instruments. The information contained herein has been obtained from sources believed to be reliable but is not guaranteed as to accuracy or completeness. Opinions and estimates constitute our judgment as of the date of this material and are subject to change without notice.

AI Generation Notice: Portions of this content may have been generated or assisted by Artificial Intelligence (AI) technologies. Users should independently verify critical data points. Past performance is not indicative of future results.

• EM credit finished the week firmer as aggregate spreads tightened and high yield outperformed investment grade amid improving quarter-end risk appetite.
• Fund flow momentum weakened materially, with EM bond flows slipping to -US$67mn after several weeks of inflows.
• Lower oil prices remain the dominant macro driver, easing inflation concerns and supporting a more dovish policy bias across several EM economies.
• Primary markets remained exceptionally active, with June EM corporate issuance reaching approximately US$70bn, the second-highest June total on record.

Market Visualizer

Weekly Snapshot: Key Drivers & Regional Flows

Regional Credit Developments

Global EM Themes

• EM bond fund flows deteriorated to -US$67mn from +US$614mn previously as hard-currency inflows slowed sharply and local-currency funds recorded outflows.
• Flow momentum has weakened across both hard-currency and local-currency segments, with ETF demand softening while actively managed funds remain relatively resilient.
• Investor demand continues to favour carry opportunities rather than broad-based spread compression.

• Falling oil prices and reduced Middle East tensions have improved the EM inflation outlook, prompting a more dovish central-bank bias across EM.
• A more hawkish Federal Reserve path and a stronger US dollar remain the primary external risks for EM assets.
• Asia remains the most exposed EM region to renewed Fed tightening and USD strength, while Eastern Europe appears comparatively insulated.

Regional Developments

• Bahrain bonds declined roughly 0.5–1.1 pts and CDS widened amid concerns surrounding reserve adequacy and reliance on external support.
• Egypt outperformed peers after a US$1.64bn IMF-linked staff-level agreement, with sovereign spreads tightening despite broader market volatility.
• Ethiopia rallied around 3 pts after reaching an agreement in principle with bondholders and making additional progress in IMF negotiations.
• Senegal underperformed with sovereign bonds down approximately 1.25–1.75 pts due to IMF discussions and debt-reporting concerns, while Kenya also lagged despite World Bank support.
• Lower oil prices are expected to support disinflation across several African economies, while Angola and Mozambique traded firmer during the week.

• Lower energy prices have improved the monetary backdrop across much of Eastern Europe and supported a more dovish policy outlook.
• Ukraine gained roughly 1.25–2 pts and ranked among the strongest regional performers despite persistent military headlines.
• Georgia benefited from a Moody’s outlook revision to Stable, while Romania continues to outperform fiscal targets.
• Hungary drew investor attention after comments suggested the 2026 fiscal deficit could exceed 7%.

• Regional credit performance remained constructive, benefiting from lower oil prices and stronger global risk sentiment.
• Argentina outperformed, with sovereign bonds advancing approximately 0.125–0.75 pts over the week.
• Colombia tightened modestly as markets focused on fiscal developments and a surprise 75bp policy rate increase to 12%.
• Latin America appears less vulnerable to Fed tightening than in prior cycles due to stronger currencies and relatively contained inflation.

• Asia credit continues to face pressure from elevated issuance, higher Treasury yields and mixed fund flow dynamics.
• Asia investment-grade spreads widened during June as heavy supply coincided with hawkish Fed repricing expectations.
• Indonesia and Philippines sovereign curves widened during the week amid broader risk repricing across the region.
• US tariff developments remain a key risk for regional growth, while the World Bank upgraded Sri Lanka and Vietnam to upper-middle-income status.

Primary Markets

• June EM corporate issuance accelerated to approximately US$70bn, marking the second-highest June issuance volume on record.
• Asia led issuance activity with roughly US$32bn, followed by Middle East & Africa (US$18bn), Emerging Europe (US$13bn) and Latin America (US$7bn).
• Upcoming local-currency government bond supply remains heavy across Asia, EMEA, Latin America and frontier markets.

DISCLAIMER

This document is strictly confidential and is being provided to you for informational purposes only. It does not constitute an offer to sell or a solicitation of an offer to buy any securities or financial instruments. The information contained herein has been obtained from sources believed to be reliable but is not guaranteed as to accuracy or completeness. Opinions and estimates constitute our judgment as of the date of this material and are subject to change without notice.

AI Generation Notice: Portions of this content may have been generated or assisted by Artificial Intelligence (AI) technologies. Users should independently verify critical data points. Past performance is not indicative of future results.

• EM credit markets were broadly range‑bound with mild spread widening, as investors reduced risk amid heavy supply and geopolitical uncertainty.
• Flows returned to positive territory, with renewed inflows into EM bond funds after a period of flat activity, supporting technicals.
• Oil price declines (~>10%) driven by US‑Iran progress shifted macro dynamics, supporting oil importers but weighing on exporters.
• Valuations remain tight across regions, consistent with a late‑cycle setup characterized by stable fundamentals but limited upside.

Market Visualizer

Weekly Snapshot: Key Drivers & Regional Flows

Regional Credit Developments

Global / Cross‑EM Themes

• EM bond funds saw renewed inflows in the week to 24 June, reversing prior flat flows and supporting overall technical conditions.
• Flow recovery was broad but uneven, with local‑currency global funds lagging due to FX weakness, while EM credit funds and Asia‑focused funds saw inflows.
• High‑frequency data indicates +US$614mn EM bond inflows, driven by strong hard‑currency demand (+$651mn) and ETF participation.
• Equity flows remain volatile, though turned positive WoW (+US$1.1bn), highlighting improving but still fragile risk sentiment.

• Oil prices have declined sharply following easing tensions in the Strait of Hormuz, with Brent falling from >$110/bbl to below ~$73/bbl.
• The oil decline is expected to reduce inflation and improve current accounts across EM, especially for importers, though not fully reversing earlier shocks.
• Global macro remains mixed, with a more hawkish Fed outlook and inflation still elevated despite easing energy pressures.
• Overall EM economies are described as “remarkably resilient” despite volatility in energy and geopolitics.

Regional Developments

• Africa credit performance diverged by oil exposure:
  • Oil exporters (Nigeria, Angola) underperformed as oil prices declined (‑0.75 to ‑1.50pts WoW)
  • Importers (Kenya, Egypt) outperformed relatively, though absolute price moves remained muted
• Gabon sold off after a negative outlook revision, while Senegal outperformed despite restructuring headlines and fiscal uncertainty.
• Lower oil prices are expected to improve external balances for importers but weaken fiscal positions for exporters.

• CEE markets were volatile but resilient, with Romania trading around political headlines (confidence vote) before stabilizing.
• Ukraine bonds weakened (~‑1 to ‑1.75pts WoW) despite continued international financial support and intermittent geopolitical optimism.
• Lower oil prices ease inflation pressure across the region, supporting central bank policy stability.

• LatAm credit showed mixed performance, with new issuance (e.g. Mexico $4.8bn deal) trading broadly around reoffer levels.
• Venezuela/PDVSA underperformed, driven by debt burden estimates (~$240bn) and adverse headlines.
• Brazil corporates were volatile, with restructuring headlines (Braskem) and rating downgrades impacting price action.
• Macro outlook highlights ongoing data monitoring and event‑driven catalysts across the region.

• Asia credit remains tight but low‑return, reflecting a late‑cycle dynamic with limited spread compression left.
• Regional macro backdrop is improving in some economies (e.g. India), supported by lower oil prices and policy measures aimed at attracting inflows.
• High‑yield issuance activity is recovering on improving geopolitical sentiment, particularly amid hopes of Middle East peace.

Primary Markets & Supply

• Primary issuance increased materially, with ~$15bn EM ex‑Asia supply during the week.
• Supply was led by:
  • Mexico (~$4.8bn 11Y + long‑end tap)
  • Turkey (~$2.75bn sukuk)
• Local markets continue to show broad‑based bond supply across Asia, CEEMEA, LatAm, and frontier issuers, reinforcing liquidity conditions.
• Market tone reflects risk reduction into heavy supply, rather than a lack of demand.

DISCLAIMER

This document is strictly confidential and is being provided to you for informational purposes only. It does not constitute an offer to sell or a solicitation of an offer to buy any securities or financial instruments. The information contained herein has been obtained from sources believed to be reliable but is not guaranteed as to accuracy or completeness. Opinions and estimates constitute our judgment as of the date of this material and are subject to change without notice.

AI Generation Notice: Portions of this content may have been generated or assisted by Artificial Intelligence (AI) technologies. Users should independently verify critical data points. Past performance is not indicative of future results.

Executive Summary: EM credit delivered a broadly resilient performance with risk recovering into week-end following a US–Iran agreement that eased oil and geopolitical concerns, though hawkish Fed signals capped upside. LatAm sovereigns tightened while selective CEEMEA and Africa names outperformed, with Ukraine and Bolivia standing out on catalysts. Asia lagged amid weak China macro and supply concerns, while frontier sovereigns benefited from lower oil prices. Primary markets remained open but subdued, with flows and positioning continuing to drive dispersion across credits.

Market Visualizer

Weekly Snapshot: Key Drivers & Regional Flows

Regional Credit Developments

🌍 EM Ex-Asia Credit

• Global EM ex-Asia: Credit was mixed but resilient as risk recovered late WoW on easing geopolitics, though higher UST yields and hawkish Fed tone limited gains.
• Egypt / Turkey: Egypt 2033s/2050s rose +1.125pts/+2.0pts while Turkey 2036s/2047s gained +0.625pts/+0.75pts on lighter positioning and lower oil.
• MENA IG / CEE: MENA IG was mixed with selling in oil-linked curves; CEE choppy on Romania headlines, though Hungary supported ahead of expected 25bp cut.
• LatAm Sovereigns: Broad tightening with Argentina 2035s +0.25pts (‑7bp), Brazil 2035s +0.75pts (‑11bp), Colombia 2036s +1.125pts (‑11bp), DR 2035s +0.625pts (‑8bp).
• Brazil Flows: Local risk weak with Ibovespa -4% and Petrobras -10%, alongside largest equity fund outflows in 15 weeks; credit focus on Braskem and Raízen.
• Primary Market: Issuance remained open but light at ~USD 7bn, including Banorte, Southern Copper, Volcan, OTP and PKO.
• Africa E&Ps: Kosmos upgraded to Caa2 (Positive) but bonds fell -3.0pts to -1.0pts; Tullow and Gran Tierra also down -2.0pts to -1.25pts on lower oil.
• Kenya / Ghana: Kenya passed KES 18.2bn mini-budget with supportive secondary demand; Ghana secured USD 300m World Bank financing.
• Lebanon: Bonds down ~-1.0pts amid ongoing regional tensions, with IMF reform clarification deadline set for 25 June and ceasefire renewed late Friday.
• Ukraine: Strong performance with A bonds +1.125pts to +2.0pts and B bonds +1.875pts to +4.0pts on IMF SLA and USD 4bn pledged military aid.
• Argentina / Bolivia: Argentina +0.125pts to +0.25pts on USD 2bn WB guarantee and USD 2bn trade surplus; Bolivia +1.125pts to +4.375pts on IMF program progress.
• Colombia: 2036s and 2054s gained +1.125pts/+1.50pts into run-off vote, with spreads -11bp/-4bp and improving polling momentum.
• LatAm HY: Digicel upgraded to B1 (+0.50pts), CSN +1.0pts to +4.0pts on asset sale process, while Braskem fell -5.50pts to -3.0pts on restructuring concerns.

🇨🇳 Asia Credit: China Property & HY

• China Macro: Weak May data with soft retail and housing sales drove underperformance in Chinese risk assets versus global equities.
• Genting: Perpetuals fell ~-0.5pts following withdrawal of SGD deal, raising supply overhang for USD perpetuals.

🌏 Asia Credit: Frontier & Sovereign

• Global Macro: Brent fell -7.8% on US–Iran agreement while hawkish Fed drove UST flattening, tempering late-week risk-on sentiment.
• Pakistan / Sri Lanka: Long-end bonds rallied ~+2pts supported by lower oil prices.
• Indonesia Sovereign: Stabilisation after BI hiked rates by 25bp, extending tightening cycle.
• Garuda Indonesia: 2031 bonds outperformed, rising ~+3pts WoW.
• Woodside: Curve tightened ~5bp on M&A speculation before being denied.
• Laisun: Bonds rose ~+2pts into low 90s following exchange offer launch with terms broadly as expected.

DISCLAIMER

This document is strictly confidential and is being provided to you for informational purposes only. It does not constitute an offer to sell or a solicitation of an offer to buy any securities or financial instruments. The information contained herein has been obtained from sources believed to be reliable but is not guaranteed as to accuracy or completeness. Opinions and estimates constitute our judgment as of the date of this material and are subject to change without notice.

AI Generation Notice: Portions of this content may have been generated or assisted by Artificial Intelligence (AI) technologies. Users should independently verify critical data points. Past performance is not indicative of future results.