Latest news with #debtmarkets
Argaam
3 days ago
- Business
- Argaam
Aramco publishes new sukuk issuance prospectus
Saudi Aramco published a new prospectus for its sukuk issuance program, signaling the state oil major may soon tap the debt markets. The prospectus, submitted to the London Stock Exchange where the sukuk would be listed, is dated May 30, Reuters reported. Aramco has a year to issue sukuk under its terms. The oil giant priced its dollar-denominated three-part bonds at $5 billion and set their yield spread, according to Argaam data. The net proceeds from each bond issuance will be used by Saudi Aramco for general corporate purposes or any other purpose specified in the final terms for a series of bonds.
Reuters
3 days ago
- Business
- Reuters
Saudi Aramco could soon issue Islamic bonds, prospectus shows
DUBAI, May 30 (Reuters) - Saudi Aramco has published a new prospectus for its issuance programme of Islamic bonds, known as sukuk, signalling the state oil giant may soon tap the debt markets again after it raised $5 billion from a three-part bond sale this week.
Japan Times
5 days ago
- Business
- Japan Times
Japan's 40-year bond sale shows weakest demand since July
Japan's auction of 40-year government bonds on Wednesday met demand that was the weakest since July, as investor appetite fell after volatility surged in global debt markets. The 40-year yield rose 9 basis points to 3.375% following the sale, as the 30-year tenor jumped 10 basis points. "Given we have just had a yield shock, I don't think anyone was expecting a really strong sale,' said Stephen Spratt, rates strategist at Societe Generale. Spratt said demand was unimpressive. The sale was a key test globally for longer tenors amid concern that rising government spending will take budget deficits into dangerous territory. In Japan it was also being viewed as an important gauge of appetite from large institutional investors, who have not filled the gap left by the central bank reducing its purchases. "The weak bidding for the 40-year bond was probably due to the continued high volatility and the fact that the actual issuance amount will not be reduced for another month, making most investors reluctant to take on risk,' said Ataru Okumura, a senior interest-rate strategist at SMBC Nikko Securities. Superlong-term government bonds had rallied Tuesday on signs that the Finance Ministry may be prepared to adjust debt issuance following a rout in the market. The moves followed aggressive upward pressure on global borrowing costs last week that drove up yields on long-maturity debt from the United States to Japan. The average bid-to-cover ratio, a measure of demand, for the bonds was 2.21 for the sale of the Finance Ministry's ¥500 billion ($3.5 billion) issue maturing in March 2065. That was lower than 2.92 at the last auction in March. "The fact today's auction didn't go very well supports the narrative that the government will adjust its issuance of superlong bonds,' said Kazuhiro Sasaki, head of research at Phillip Securities Japan. "So in a sense, this is a positive for the bond market, because it increases the likelihood that the Finance Ministry will do something.' The Finance Ministry — in a move that was unusual because of its timing and the wide group of people contacted — sent a questionnaire to market participants on Monday evening that asked for their views on issuance and the current market situation, said people familiar with the situation. Next month is shaping up as pivotal for the bond market, with the central bank holding a policy meeting on June 16 and 17 at which it is expected to consider any changes to its tapering of debt purchases. Meanwhile, the Finance Ministry is expected to be considering input from market participants on bond issuance.
Bloomberg
5 days ago
- Business
- Bloomberg
Japan 40-Year Bond Sale Demand Is Weakest Since July
Japan's auction of 40-year government bonds Wednesday met demand that was the weakest since July, an outcome that risks fueling further volatility in global debt markets. The yield on the nation's 40-year bonds was little changed from 12:34 p.m. in Tokyo just before the auction results.
CNA
22-05-2025
- Business
- CNA
Bond selloff rolls on as US House passes Trump's 'big beautiful' tax bill
LONDON : Bond vigilantes continued to stalk global debt markets on Thursday, also keeping the dollar and stocks subdued, as the U.S. House of Representatives passed President Donald Trump's "big beautiful" tax bill by a single vote. Wall Street looked set to open fractionally higher [.N]having tumbled on Wednesday after the previous day's limp U.S. and Japanese long-term debt sales had highlighted the unease about rising government debt burdens. This reinforced a "Sell America" narrative at the front of investors minds after Moody's last week became the last of the major credit rating agencies to strip the U.S. of its coveted triple-A status. Long-term 20- and 30-year U.S. Treasury yields were shuffling higher again as were those in Europe, where benchmark German 20-year yields reached their highest in two months as global yield curves steepened. Britain's government borrowed more than expected in April, figures showed, while euro zone business activity unexpectedly slipped back into contraction territory. Stock markets in London, Paris, Milan and Frankfurt were all down between 0.75 per cent and 1 per cent [EU.]. The dollar was at its weakest against the Japanese yen in two weeks, while bitcoin set an all-time high, partly as investors sought out alternatives to U.S. assets. [EU.] [GVD/EUR] The non-partisan Committee for a Responsible Federal Budget estimates that the U.S. bill, which will extend Trump's signature 2017 tax cuts as well as boost military and other spending, will increase the U.S.'s $36 trillion debt pile by $3.8 trillion over the next decade. "It should be good news that fiscal stimulus is coming given that markets have been worried about recession risk, but there is also the concern about fiscal sustainability," State Street Global Markets' Michael Metcalfe said. "I think the dollar is the bellwether to watch here. If it isn't reacting to higher yields, it shows that confidence in U.S. policymaking has perhaps been dented." The yields on 30-year Treasury bonds - a proxy for super long-term U.S. government borrowing costs - reached 5.13 per cent, their highest since October 2023 and the 20-year yield hit 5.14 per cent, its highest since November that year. The bond market in Japan has also been in focus given that it has the highest debt-to-GDP ratio of any major economy. The 30-year JGB yield hovered at 3.169 per cent, not far from the record high of 3.185 per cent hit in the previous session. Stocks in Asia also fell after Wall Street's Wednesday tumble. MSCI's broadest index of Asia-Pacific shares outside Japan ended 0.6 per cent lower, while Japan's Nikkei fell 0.8 per cent on the stronger yen. [FRX/] "The view is that, with this bill, Trump is playing with fire with the deficit," said Francesco Pesole, FX strategist at ING. "It's causing a coordinated sell-off in equities and Treasuries, and the 'Sell America' theme is obviously quite negative for the dollar," Pesole added. TRADE DEAL PROGRESS Oil prices were down more than 1.5 per cent following a report that countries in the OPEC+ group are discussing another sharp production increase for July. Brent futures fell $1, or 1.5 per cent, to $63.98 a barrel in Europe, while U.S. West Texas Intermediate crude dropped 97 cents, or 1.58 per cent, to $60.60. Modest progress to date on trade deals has also made investors nervous. Attention was also on a Group of Seven meeting in Canada, where finance ministers had put a positive spin on discussions to try to reach an agreement on a joint communique largely covering non-tariff issues. Investors have been looking for any hints that currency markets could be part of trade negotiations. But Thai and Japanese officials said currency markets were not part of their discussions. Bitcoin had no such worries. It climbed as high as $111,862.98, a new record peak and a 3.3 per cent increase from Wednesday's close. It comes amid hopes that soon-to-be-finalised U.S. stablecoin regulation will continue to bring cryptoassets into the mainstream. "My official forecasts for Bitcoin are 120k end Q2, 200k end 2025 and 500k end 2028," Standard Chartered's Geoff Kendrick said.
