Morning Commentary: Emerging markets buoyed by rates; many sovereigns firm; ADCOP active

By Rebecca Melvin

New York, Oct. 30 – The emerging markets were buoyed early Monday by firm rates and the assumption that Federal Reserve governor Jerome Powell is the nominee of U.S. president Donald Trump to be the next chairman of the Federal Reserve, according to market sources.

The president hasn’t made a formal decision, but the announcement is expected sometime this week.

“It’s a busy start to the week,” a London-based trader said, adding that the long end of many sovereign credits were “very firm,” including Egypt’s 2047 notes, which were 112.50, and tighter by 20 basis points over the month. And Lebanon bounced back from wider spreads notched last Thursday but remained 15 bps to 20 bps wider on the month.

Abu Dhabi Crude Oil Pipeline LLC’s two new tranches were active and just slightly tighter in terms of spread. The Abu Dhabi 4.6% notes due 2047 were 101.25 bid, 101.50 offered last, compared to a up to 100.5 bid, 101.25 offered on their debut on Friday.

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