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AMLO's Pemex Pledge Sparks Rally in Oil-Giant's Battered Bonds

  • ‘The market is looking for a big number:’ Aberdeen’s Gutierrez
  • AMLO says Tuesday that focus will be to reduce tax payments
Andres Manuel Lopez Obrador
Andres Manuel Lopez ObradorPhotographer: T.J. Kirkpatrick/Bloomberg
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Petroleos Mexicanos bonds jumped to a three-month high after President Andres Manuel Lopez Obrador said he would announce measures to help the debt-laden company.

Investors are hoping that any new package will be a significant step up from the $3.5 billion of tax cuts over six years unveiled last month. That announcement was followed by a slump in the bonds as Fitch Ratings cut Pemex’s debt to the verge of junk, citing the challenges of a company with $107 billion in debt and sliding output.