Petrobras Bonds Sink as Offering Delay May Swell Debt

Petroleo Brasileiro SA’s benchmark dollar bonds posted the biggest weekly decline in almost two months on speculation the Brazilian state-run oil producer will be forced to increase debt financing after delaying a planned share sale.

Yields on Petrobras’s 5.75 percent dollar bonds due in 2020 rose 27 basis points, or 0.27 percentage point, to 5.74 percent, the biggest weekly increase in seven weeks, according to data compiled by Bloomberg. The extra yield investors demand to own the notes rather than Brazilian government debt jumped to 150 yesterday, the highest since the securities were issued in October, from 94 at the end of last week.