Yields on Mexico’s dollar- denominated century bonds are soaring to a record relative to securities due in 30 years on concern the Federal Reserve’s efforts to shore up the U.S. economy will spark inflation.
Brazilian corporate bond yields are rising to the highest level relative to government debt in 14 months as a slowing global economic expansion erodes demand for all but the safest emerging-market assets.
The cost of insuring against a default by Petroleos Mexicanos is falling to the lowest in almost a year relative to Brazilian counterpart Petroleo Brasileiro SA as the Mexican producer curbs overseas debt sales.
Cemex SAB, the largest cement maker in the Americas, has become the biggest Mexican issuer of debt overseas this year after reviving a sale it scrapped last month as Europe’s debt crisis roiled global markets.
Reserve Bank Governor Glenn Stevens said Australia has room to adjust interest rates in response to a global slowdown as Treasurer Wayne Swan called on European nations to balance economic growth with fiscal tightening.