[LATAM CLOSE]: Is It September Yet?

As the week kicked off, market participants did not let down on deal flow - over in U.S. Investment Grade and U.S. High Yield. The two last weeks of August have been known to be a time of reduced issuance as those at syndicate desks tend to take time off before Labor Day and the generally very sudden increase in deal flow following the early September holiday.

LatAm, however, continues its drought. While the United Mexican States did announce a six-part JPY-denominated samurai bond deal (Reg S only), with pricing possible on Thursday, there have been no other whispers of any deal flow by LatAm credits.

The session was characterized by yet another rally in U.S. equities, thus turning the drastic and dramatic selloff from exactly 14 days ago a mostly faraway memory. With the Federal Reserve now seen as almost certain to lower the Federal Funds Rate at September's FOMC meeting, the S&P closed +51.75 at 5,630. The DJIA closed +236.77 at 40,896.53; this was the Dow's third-highest ever close. The yield on the 10yr U.S. Treasury fell by 3bp to close at 3.86%, while the 30yr U.S. Treasury yield fell 4bp to 4.11%. The 2yr U.S. Treasury yield closed at 4.06%.

With August now more than half over, and with Peru's August 1's $3bln trade the sole deal flow this month, it remains to be seen whether deal flow will return in large numbers only next month.

2024 volume remains unchanged at $79.064bln.

LATAM PIPELINE

There are no mandates at this time.

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