Mexico Bonds Trade Like Junk After $130 Billion Bailout of Pemex

Bond traders are reportedly treating Mexican debt as “junk” after the government spent $130B to bail out state-owned oil producer Pemex (Petroleos Mexicanos). The move raises concerns about Mexico’s fiscal trajectory and credit quality, weighing on Mexican sovereign bond sentiment. This is likely to be sector-moving for Mexican rates/credit as liquidity and risk premia reprice.