2/5/2019 – Bloomberg Markets
Petroleos Mexicanos bonds jumped after President Andres Manuel Lopez Obrador said he would announce a package of measures to help the debt-laden company.
Dollar debt maturing in 2027 rallied 0.9 percent to their highest since October, pushing the yield down 15 basis points to 6.697 percent.
The company is weighed down by $107 billion in debt, yet has little to show for that expense with output declining steadily over the past 14 years. The bonds tumbled last week after the government announced tax cuts for Pemex, but failed to deliver the cash injection many had expected. Now, investors hope that Lopez Obrador will bite the bullet and provide the much-needed funds. It is not yet clear if that is the case.