Indonesia, Hungarian Development issue notes; EM bonds mixed on IMF news, global headlines

By Christine Van Dusen

Atlanta, Dec. 1 – Indonesia and MFB Hungarian Development Bank Private Co. Ltd. sold notes on a firm Tuesday for many emerging markets bonds, following the announcement that the renminbi would be included in the International Monetary Fund’s reserve currency basket.

“I guess the effect of such a move will take a long time to play out,” a trader said.

In trading, banks and corporates from Turkey continued to soften, repricing “wider on issuance news and catch-up with the sovereign curve,” a trader said. “We have seen some nibbling in corporates by real money.”

This came against an increasingly tense backdrop, as Turkey and Russia argued over the downing of a Russian jet.

Looking to Latin America, regional bonds were “under pressure” as a result of dynamics in commodities and the tumultuous political situation in Brazil, according to a report from Schildershoven Finance BV.

Five-year credit default swaps spreads for the sovereign traded wider, in the 450-basis-points area, on Tuesday morning before settling in at 447 bps, unchanged, another trader said.

Mexico’s CDS moved to 151 bps from 154 bps.

“Cash prices spent most of the day unchanged until catching a bid late in the session, with bids popping up on screens and offers lifted,” he said. “The move higher in cash prices coincided with U.S. Treasuries and equities hitting intraday highs.”

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.