Morning Commentary: Iraq’s new notes edge up in trade; CEEMEA markets mostly quiet, sanguine

By Rebecca Melvin

New York, Aug. 3 – The Republic of Iraq’s new 6¾% notes edged up in trade and stood at 100.3 bid, 100.5 offered early Thursday after the sovereign priced $1 billion of the 5.5-year notes at the tight end of talk on Wednesday, according to a market source.

Emerging market debt players were cheered by the successful pricing of the Iraq notes, which represented the first international debt in more than a decade from that country, which has been ravaged by Middle East conflicts and the Iraq war from 2003 to 2011.

“The Iraq deal was a big success and a good sign that the country can come to the market and get a debt deal done,” the market source said.

He said the tone is constructive and while the next few weeks are expected to be quiet, the market is expected to reopen in September with a strong mandate.

Elsewhere, the markets did not appear to be ruffled by sanctions signed into law in the United States against Iran, North Korea and Russia.

It was business as usual, a source said. The markets, including the CIS region, were trading normally albeit thinly with summer holiday season still underway.

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