Today's Bonds Pulse
WBD bondholders approve covenant changes, clearing path for $110.9B Paramount deal
Warner Bros. Discovery obtained consent from bondholders and lenders to amend its fiscal covenants, a prerequisite for the $110.9 billion Paramount‑Skydance acquisition. The amendment covered $16.6 billion of debt, with approval rates ranging from 79 % to 99 % across note classes. Paramount will pay a $2.50 cash bonus per $1,000 of debt to secure the votes, a cost it will bear entirely.
ECB Warns Iran War Fallout Heightens Europe’s Financial Risks, Hints at June Rate Hike
ECB Executive Board member Isabel Schnabel said the central bank will likely raise interest rates in June even if the Iran war ends quickly, citing damage to energy markets and credit conditions. Bank of France Governor François Villeroy de Galhau echoed the urgency, pledging the ECB will do whatever is needed to bring inflation back to target. The warning sent the Stoxx 600 and France’s CAC 40 sliding, underscoring heightened vulnerability across Euro‑zone equities.
EM Lens: Dispersion Creates Cleaner Entry Points in EM Debt
Emerging‑market (EM) debt is showing increasing dispersion as external balances, policy flexibility, and proximity to the Iran‑related conflict diverge across countries. BlackRock’s EM fixed‑income manager Pablo Goldberg and Bloomberg Intelligence’s Damian Sassower discuss how attractive real yields and resilient fundamentals...
ECB Signals June Rate Hike as Inflation Expectations Rise, Euro Climbs
Bank of France Governor François Villeroy de Galhau, ECB executive board member Isabel Schnabel, chief economist Philip Lane and Dutch central‑bank chief Olaf Sleijpen all indicated a likely 25‑bp rate increase at the June 11 meeting. Their comments lifted the euro...
EBRD Green Bond Launch and Moody's South Africa Outlook Upgrade Signal Shifts in Global Bond Markets
The European Bank for Reconstruction and Development (EBRD) announced a €4.2 billion ($4.5 billion) financing package for Central Asian energy upgrades and backed Eesti Energia's inaugural green bond, while Moody's lifted South Africa's sovereign outlook to positive, highlighting fresh yield pressures across...
Bitunix Analyst Flags Volatile Summer as 10‑Year Treasury Yield Tops 4.5%
Bitunix Exchange analyst Dean Chen warned that a summer of heightened market volatility is likely as the U.S. 10‑year Treasury yield broke above 4.5% and the 30‑year passed 5%. He warned that persistent fiscal deficits, tighter global liquidity and Japan’s...
Why Michael Saylor Bought Bonds Instead of Bitcoin
The Daily Wolf highlighted Michael Saylor’s decision to use MicroStrategy’s cash to repurchase $1.5 billion of its 2029 convertible notes rather than buying more Bitcoin, signaling a shift toward balance‑sheet optimization. The buyback was executed at an 8 % discount to par, cutting...
Iran Deal Boosts USTs, 30-Year Yields Return to 5%
Front end UST supply and futures rolls (M to U) will dominate trading flows this week as Iran deal buoys USTs from the depths of despair. 30s back to 5% https://t.co/insUyZcZIs
Why China Keeps Selling U.S. Treasuries | China Decode
The episode of China Decode examined the converging strategic partnership between Russia and China, focusing on the stalled Power of Siberia 2 gas pipeline, and China’s recent sell‑off of U.S. Treasury securities against the backdrop of the Middle‑East energy crisis. Hosts highlighted...
As Treasurys Plummet Again, Is Rate Relief on the Way for the Summer?
UWM’s EVP Alex Elezaj says the recent 8‑basis‑point drop in the 10‑year Treasury, now hovering just below 4%, could usher in mortgage‑rate relief later this year. The decline follows hopes that the Iran conflict will ease and that new Fed...
US Treasury Auctions $69B of 2 Year Notes at a High Yield Of
The U.S. Treasury auctioned $69 billion of two‑year notes, closing at a 4.071% yield—the highest in recent months. Demand was solid, with a bid‑to‑cover ratio of 2.64×, slightly above the six‑month average. Dealer participation fell to 12.3% while direct investors captured...
Moody's Affirms New Mexico County's Ratings Amid ICE Facility Risks
Moody’s affirmed Otero County, New Mexico’s A1 issuer rating and its A1 and A2 revenue‑bond ratings, while flagging lingering risk tied to the county’s ICE detention facility. The county’s $283 million five‑year ICE service agreement, approved in March, averted an imminent $14.33 million...
U.S. Debt Hits 100% of GDP, Raising Alarm Over Future Treasury Yields
A policy brief from the Stanford Institute of Economic Policy Research, co‑authored by a senior economic adviser to President Biden, warns that publicly held U.S. debt has reached $31 trillion – roughly 100% of GDP – and that rising interest rates...
RFMZ: Still The Best Value Even As Discount Tightens
RiverNorth Flexible Municipal Income Fund II (RFMZ) is trading at an 8.71% discount, the deepest valuation gap among comparable municipal closed‑end funds. The fund’s hybrid approach blends direct municipal bonds with other muni CEFs, delivering a 7.42% distribution yield but...
Moody's, S&P Upgrade Detroit After Court Ends Oversight
Moody's upgraded Detroit’s general‑obligation bond rating to A3 from Baa1, while S&P lifted it to BBB‑plus from BBB, moving the city into investment‑grade territory. The upgrades follow the court’s decision to end oversight after Detroit completed its final $10 million payment...
Bond Market Ushers in Warsh Era With Bets on 2026 Hike
Kevin Warsh has taken the Federal Reserve’s helm, prompting bond investors to reassess rate outlooks. The market is now pricing a potential rate hike as early as 2026, emphasizing the Fed’s inflation‑fighting credibility over President Donald Trump’s calls for lower...
Treasuries Flash Bullish Signals After Oil Selloff
U.S. Treasury yields opened with bullish gaps on Monday after crude oil futures plunged to $89.41 per barrel, a sharp drop from Friday’s $96.60 close. The 5‑year and 10‑year yields remain within the analyst’s wave‑theory target ranges, while the 30‑year...
Bond Yields Flashing Historical Signal as SPY Sentiment Shifts
The 10‑year Treasury yield surged to roughly 4.6% this week, marking the third consecutive May that the benchmark has peaked near that level. A newly sworn‑in Fed chair and rising short‑term inflation expectations have added uncertainty, but equity markets rallied...