EM LATAM CREDIT: Colombia (COLOM; Baa2neg/BB+neg/BB+neg): Diesel Price Hikes

• Reoffer price 99.824 to yield 3.515%
• Spread set earlier at 3.90% Jul-39 Obli (mid) + 9bps (Guidance was +11bps area)
• Size: E7bln (MNI expected E5-10bln)
• Books closed in excess of E93bln (inc. E7.5bln JLM interest)
• Maturity: 31 January 2041
• Coupon: 3.50%. Short first to 31 January 2026
• Settlement: 4 March-2025 (T+5)
• ISIN: ES0000012O75
• Bookrunners: BARCLAYS / CACIB (B&D/DM) / GSBE SE / HSBC / NOMURA / SG
• Timing: FTT Immediately

From market source / BBG

The DMO has announced it will be looking to sell GBP2.25bln of the 4.375% Jul-54 Gilt (ISIN: GB00BPSNBB36) at its auction next Tuesday, March 4.

Yet another survey conducted in February shows a deterioration in private setor confidence: the Conference Board's consumer confidence composite fell to 98.3 from 105.3 prior (102.5 expected), led by a drop in expectations to 72.9 from 82.2. The "present situation" composite edged lower for a 2nd consecutive month, to 136.5 (139.9 prior).

• This was the 4th-worst monthly composite reading since the start of 2021, and represented the largest monthly decline since Aug 2021.
• According to the report, the Expectations index "was below the threshold of 80 that usually signals a recession ahead" (though we would note that this index was below 80 through most of 2022-2024 without recession hitting).
• 12-month inflation expectations jumped: average hit 6.0% from 5.2% prior, highest since May 2023, with median to 4.8% from 4.2% prior, highest since Nov 2023.
• Only one of the five components of the composite Index rose: assessment of present business conditions.
• As with other February surveys, policy uncertainty was a major theme - the report notes: "There was a sharp increase in the mentions of trade and tariffs, back to a level unseen since 2019. Most notably, comments on the current Administration and its policies dominated the responses.”
• Notable on the labor market front: the differential between jobs "plentiful" minus "hard to get" fell to 17.1, the 2nd monthly drop and the lowest figure in 4 months. A resumption of this downtrend would be consistent with an increase in the unemployment rate from its current level of 4.0%.