Spiralling U.S. interest rates and volatile European bond markets have driven all but the most hardy of Eurobond issuers away from the fixed income markets.
High-yield bonds suffered even more from investor jitters, and were shaken by the killing last week of Mexican presidential candidate, Luis Donaldo Colosio.
Mexico is seen as a major emerging market, and a benchmark sovereign for other emerging market debt.
"There are a lot of people who are in quite a lot of pain -- traders have been long on Brady bonds for the past three years," said one emerging market source from a European bank.
Eurobond prices have continued to fall this week, with little good news to fuel an upturn.
Argentina's $1 billion 10-year global bond is at 89 89.875 against a 99.368 issue price.
Mexico's BNCE's $1 billion 10-year global bond was trading late yesterday at 85.875 86.875, from a 99.516 launch price.
Traders recite a litany of emerging market bonds which borrowers have postponed. These include global dollar bonds for the Republic of Turkey and National Bank of Hungary, a Euroyen issue for the Republic of Argentina and a dollar bond for the Industrial Development Bank of India.
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