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Bond Market News
Treasury Yields Jump Higher; ISM Manufacturing Comes Higher
April 2, 2026
US Treasury yields jumped higher by 7-8bp across the curve. US President Donald Trump said that the US is “nearing completion” on its strategic objectives and is likely to leave Iran soon. However he added that their military may hit Iran “extremely har” over the next few weeks. Brent crude briefly went below $100/bbl but has since spiked to over $105/bbl. On the data front, the ISM Manufacturing Index reading for March came in at 52.7, beating expectations of 52.3. Among its sub-components, the Price Paid Index shot higher to 78.3, indicating elevated inflationary pressures. ADP Payrolls showed an increase of 62k, higher than expectations of 40k. Retail Sales for February rose by 0.6%, higher than the surveyed 0.5%. Similarly, Core Retail Sales rose by 0.5%, higher than the surveyed 0.3%.
Looking at US equity markets, the S&P and Nasdaq ended higher again on Wednesday, by 0.7% and 1.2% respectively. US IG CDS spreads tightened by 2.6bp and HY CDS spreads were 9.8bp tighter. European equity indices ended higher too. The iTraxx Main CDS spreads were 5.2bp tighter and the Crossover CDS spreads tightened 25.8bp. Asian equity markets have opened in the red this morning. Asia ex-Japan CDS spreads tightened by 5.1bp.
New Bond Issues
GM Financial raised $1.4bn via a 3Y bond at a yield of 4.76%, 27bp inside initial guidance of T+120bp area. The senior unsecured note is rated Baa2/BBB/BBB. Proceeds will be used for general corporate purposes.
Shinhan Bank raised $2bn via a two-part deal. It raised $300mn via a 3Y FRN at SOFR+58bp vs. initial guidance of SOFR+95bp area. It also raised $300mn via a 5Y bond at a yield of 4.387%, 37bp inside initial guidance of T+80bp area. The senior unsecured notes are rated Aa3/A+/A. Proceeds will be used towards initiatives aligned with Shinhan Bank’s Development Impact Framework.
Vista Energy Argentina raised $500mn via a 12Y bond at a yield of 7.875%, 12.5bp inside initial guidance of 8.00% area. The senior unsecured note is rated BB- (Fitch). Net proceeds will be used for debt repayment, paying fees and expenses under its tender offer, investments in Argentinian fixed assets and working capital, acquisition of companies/businesses in Argentina, capital contributions for financing of commercial activities, and for general financing needs.
Kexim raised $500mn via a 5Y bond at a yield of 4.215%, 30bp inside initial guidance of T+57bp area. The senior unsecured bond is rated Aa2/AA- (Moody’s/Fitch). Proceeds will be used to achieve its main objectives of the Supply Chain Resilience Fund administered by KEXIM.
New Bonds Pipeline
- Sasol $ 7NC3 bond
Rating Changes
- Fitch Upgrades China CITIC Bank’s Long-Term IDR to ‘A-‘; Outlook Stable
- Falabella S.A. Upgraded To ‘BBB-‘ From ‘BB+’ On Improved Performance And Deleveraging; Outlook Stable
- Moody’s Ratings upgrades Permian Resources to Baa3; outlook stable
- Qingdao Conson Upgraded To ‘BBB+’ On Solid Government Support While Transformation Continues; Outlook Stable
- Aegea Saneamento Ratings Lowered To ‘B+’ And Placed On CreditWatch Negative On Delayed Financial Statements
- Burford Downgraded To ‘BB-‘ On Higher Leverage And Lower Financial Flexibility On YPF S.A. Write-Down; Outlook Stable
- Moody’s Ratings downgrades BFF Bank S.p.A.’s ratings and places them on review for downgrade
- Energean Israel Finance Ltd. Outlook Revised To Negative On Escalating Geopolitical Risks; ‘BB-‘ Rating Affirmed
- Moody’s Ratings affirms Burford Capital’s Ba1 senior unsecured rating; changes outlook to negative from stable
- Unilever Outlook Revised To Negative On Announced Disposal Of Foods Business; ‘A+/A-1’ Ratings Affirmed
Term of the Day: Acceleration Notice
An acceleration notice is a bond clause which allows lenders to demand a borrower to immediately repay a bond if specific requirements are not met. Thus, the borrower must immediately pay unpaid principal and accumulated interest prior to the invocation of the notice. These notices are generally given when a borrower materially breaches the loan/debt agreement.
Talking Heads
On Asian CDS Heading for Biggest Drop in 11 Months
Rajeev De Mello, Gama Asset Management
“There seems to be a desire on all sides to downgrade the conflict. Asia CDS are reflecting this moderation. Unless there is a flaring up of attacks and rhetoric, I see this move as the start of a normalization in CDS markets”
On Traders Ahead of Themselves on Rate Hike Bets – Andrew Bailey, BOE Governor
Markets are “getting ahead of themselves”… need to keep inflation under control in a way that “causes the least damage in terms of activity in the economy and in terms of jobs… the most important thing to do is to tackle the source of the shock.”
On Hedge funds facingworst monthly drawdown in over four years
Bruno Schneller, Erlen Capital
“This environment exposed vulnerabilities in crowded positioning, highlighting how quickly factor dislocations and forced de-risking can impact even highly diversified pod-shop models when leverage coincides with sudden correlation spikes”
Top Gainers and Losers- 02-Apr-26*
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