Edition:
India

Karin Strohecker

Oil attacks send Saudi Arabia and Aramco bonds to multi-week lows

16 Sep 2019

LONDON/DUBAI Dollar-denominated bonds issued by Saudi Arabia's government and state oil company Saudi Aramco tumbled to multi-week lows on Monday after a weekend attack on Saudi Arabia's oil facilities shut about 5% of global output. [O/R]

Factbox: Mozambique debt crisis - What does the country owe, and to whom?

10 Sep 2019

LONDON Heavily indebted Mozambique has been battling for years to recover from a debt crisis and Monday's agreement with Eurobond creditors marks another step on the way.

GLOBAL MARKETS-Bond yields climb as ECB stimulus expectations adjust

10 Sep 2019

LONDON, Sept 10 Global bond yields rose on Tuesday, amid growing caution over the extent to which the European Central Bank will add stimulus to boost an ailing economy this week and rising hopes that Berlin could loosen its purse strings.

GLOBAL MARKETS-Waning ECB stimulus bets push bond yields higher

10 Sep 2019

LONDON, Sept 10 Global bond yields rose on Monday, amid growing caution over the extent to which the European Central Bank will add stimulus to boost an ailing economy this week and rising hopes that Berlin could loosen its purse strings.

Mozambique gets green light for Eurobond debt swap plan

10 Sep 2019

LONDON Creditors holding 99.5% of Mozambique's Eurobond support its debt restructuring proposal, the country's government said in a statement on Monday, paving the way for an overhaul of part of its heavy debt burden.

FACTBOX-Mozambique debt crisis: What does the country owe, and to whom?

09 Sep 2019

LONDON, Sept 9 Heavily indebted Mozambique has been battling for years to recover from a debt crisis and Monday's agreement with Eurobond creditors marks another step on the way.

UPDATE 2-JPMorgan adds China to emerging bond index from February 2020

04 Sep 2019

(adds quotes, details, table) By Karin Strohecker LONDON, Sept 4 JPMorgan will add Chinese government bonds to its widely tracked emerging market local currency bond index from February 2020 - a decision expected to suck billions into the world's third largest bond market. Nine Chinese local currency bonds will be included in the bank's Government Bond Index Emerging Markets (GBI-EM) suite in a 10-month process that will see the country's weighting rise to the maximum cap of 10% in the main index, the index team said in a note on Wednesday. Six of the bonds have already been issued, with the others also expected to be sold this year, the note said. The main index, GBI-EM Global Diversified, has $202 billion benchmarked against it, the bank added. Goldman Sachs calculated that the inclusion in the GBI-EM Global Diversified could pull $3 billion of investor money into China's bond market per month. Past restrictions have prevented foreign investors from tapping local bonds in the world's second largest economy. But Beijing has made access easier in recent years, most recently by launching the Bond Connect scheme in 2017 that allows investors to buy and sell onshore bonds via Hong Kong. Such improvements have nudged benchmark providers to start finally incorporating China. Bloomberg Barclays Global Aggregate Index started adding Chinese government and policy bank bonds over 20 months in April. The bonds are also on a "watchlist" to join FTSE Russell's World Government Bond Index (WGBI), with a review scheduled for September, the index provider has said. Goldman Sachs calculates that since index membership in April, Chinese bond markets have raked in $6-7 billion of investor money a month, and predicted that joining the WGBI could translate into another $6-7.5 billion a month. "There is value in this market. It is cheap because it is under-invested by foreign investors at the moment," said Edmund Goh at Aberdeen Standard Investments in Shanghai, whose firm had been buying Chinese bonds since last year in anticipation of the index inclusion and to diversify portfolios. "When you look around global bond markets, about one third of bonds in negative yield, the interest rate cycle (in China) has a low correlation with others." The inclusion is expected to reduce index yields of the GBI-EM Global Diversified and GBI-EM Global by 17 basis points and 39 basis points respectively once the process is finished. SOME PAIN AHEAD The inclusion of China will see some other countries suffer as investors adjust their portfolios. According to calculations by JPMorgan, Thailand, Poland, South Africa, Colombia and Malaysia will all see their main index weightings cut by around one percentage point. "This is one of the biggest inclusions that has happened to emerging market countries," said Abhishek Kumar at State Street Global Advisors. "...Given the current market conditions for South Africa, this can have a small impact on debt markets." CHINA 10% - BRAZIL 10% 10% MEXICO 9.95% 10% INDONESIA 9.47% 10% THAILAND 8.32% 9.37% POLAND 7.86% 8.86% SOUTH AFRICA 7.51% 8.49% RUSSIA 7.11% 7.99% COLOMBIA 5.54% 6.56% MALAYSIA 5.17% 6.12% HUNGARY 3.70% 4.38% CZECH REPUBLIC 3.33% 3.95% PERU 3.20% 3.80% TURKEY 3.09% 3.66% CHILE 2.94% 3.49% ROMANIA 2.09% 2.48% PHILIPPINES 0.25% 0.30% DOMINICAN REPUBLIC 0.17% 0.20% URUGUAY 0.16% 0.19% ARGENTINA 0.15% 0.17% Source: JPMorgan China's inclusion will mean 20 countries are included in the GBI-EM Global Diversified index, and its market value will rise to $1.1 trillion from $926 billion, the note said. The Chinese bonds earmarked for inclusion maturing in 2024 , 2026, 2028 and 2029 traded a touch softer on the day. (Reporting by Karin Strohecker Additional reporting by Tom Arnold and Noah Sin Editing by Peter Graff and John Stonestreet)

Down, down they go: Emerging central banks deliver most rate cuts in a decade

02 Sep 2019

LONDON Emerging market policymakers slashed interest rates in August, taking their lead from major central banks including the U.S. Federal Reserve and the European Central Bank and joining in efforts to shore up their economies.

Return to capital controls sends Argentina assets tumbling

02 Sep 2019

LONDON/BUENOS AIRES Argentina's international dollar and euro-denominated bonds fell to record lows on Monday while its financial stocks tumbled and risk premiums shot up after President Mauricio Macri reimposed capital controls on Sunday as the country's debt crisis spirals. | Video

UPDATE 1-Return to capital controls sends Argentina assets tumbling

02 Sep 2019

LONDON, Sept 2 Argentina's international dollar bonds hit record lows on Monday while its financial stocks tumbled and risk premia shot up after President Mauricio Macri reimposed capital controls on Sunday as the country's debt crisis spirals.

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