Pemex Spreads Over Mexico Narrow on Sheinbaum Optimism: Chart

(Bloomberg) -- The yield spread between Mexico’s benchmark sovereign bonds and debt issued by state oil company Petroleos Mexicanos has shrunk to its lowest in at least a year, as investors grow more confident Claudia Sheinbaum will continue to support the debt-laden driller and refiner. The clear front-runner in June 2 presidential elections, Sheinbaum has called for the company to refinance bonds ahead of large maturities in 2025, and government officials are said to be weighing options to absorb as much as $40 billion of Pemex’s debt. Investors also say they’re confident her commitment to sustainability will help the company’s bond yields come down even further.

Most Read from Bloomberg

• China Considers Government Buying of Unsold Homes to Save Property Market

• How One of the World's Oldest Hedge Funds Went Bankrupt

• Flood of China Used Cooking Oil Spurs Call to Hike US Levies

• OpenAI Chief Scientist Ilya Sutskever Is Leaving the Company

• Biden Accuses China of ‘Cheating’ on Trade, Imposes New Tariffs

--With assistance from Michael O'Boyle.

Most Read from Bloomberg Businessweek

• How the ‘Harvard of Trading’ Ruined Thousands of Young People’s Lives

• Kids Hooked on Video Games Prompt a Flurry of Lawsuits

• US East Coast Ports Are Spending Billions to Profit From Asia’s Shifting Exports

• The DNA Test Delusion

• Elon Musk’s Big AI Contradiction

©2024 Bloomberg L.P.