Transelec sells notes; trading mostly quiet ahead of payrolls data; Petrobras preps add-on

By Christine Van Dusen

Atlanta, July 7 – Chile’s Transelec SA was among the issuers to sell new notes on Thursday as investors digested the Federal Reserve’s minutes and looked ahead to the release of payrolls data from the United States.

The data could “open some potential potholes on the road to making more historic low yields,” a trader said. “The big question is, what’s the next big move in emerging markets?”

If global rates remain as they are, “then back up the truck and watch for EM spreads to take another leg tighter,” he said.

The Fed’s minutes “did not reveal anything mind-blowing,” a London-based analyst said.

Trading was quiet for names from the Middle East, given that many countries in the region were celebrating Ramadan, he said.

Looking to Latin America, some names from Mexico and Chile moved higher on Thursday but most were unchanged, a New York-based trader said.

In deal-related news, Brazil’s Petroleo Brasileiro SA (Petrobras) is planning to issue taps of its dollar-denominated 8 3/8% notes due in 2021 and 8¾% notes due in 2026 via subsidiary Petrobras Global Finance BV, according to a company filing.

Argentina’s Grupo Financiero Galicia SA will set out on July 11 for a roadshow to market a dollar-denominated issue of notes, a market source said.

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