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.

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--With assistance from Michael O'Boyle.

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