Bids are now becoming absent as Latin American debt markets fall quite, maybe too quite.
As bond markets from Brazil through to Argentina are starting to show illiquid signs, which may be attributed to the slowing US economy and the slowing Chinese ecomomy, political uncertainty in both Brazil and Argentina continue to weigh on markets.
Brazil debt is considered some of the highest graded in the world, is now being bid at prices below what they were getting in early August 2010. Brazil will be facing Presidential elections soon and market jitters are starting to effect not only bond prices but stocks, with Brazilian banking sector getting hit hard on August 25th 2010 sell off
LatAm Sovereigns (debt):
Brazil's 2040s @ 138.25 bid (unchanged)
Mexico's 2019s closed 50ct weaker @ 116.00 bid.
Argentina underperformed global 2017s down 75ct weaker @ 91.50 bid
Venezuela's 2027s closed 25ct weaker @ 71.75 bid.
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