EM spreads unchanged as stocks tumble; Angola starts roadshow; Venezuela flat to weaker

By Rebecca Melvin

New York, April 24 – Emerging markets debt spreads were little changed on Tuesday despite a tumble in U.S. stocks and higher U.S. Treasury yields that took the benchmark 10-year note above 3% for the first time in four years.

In primary market action, South Africa-listed real estate investment trust Growthpoint Properties Ltd. released price talk early Tuesday for a dollar-denominated five-year note in the 6% yield area.

The Republic of Angola announced a series of fixed-income investor meetings in the United States and Europe for a planned offering of dollar-denominated 10-year notes, according to market sources.

The sovereign is also considering a second tranche of longer-dated bonds subject to investor interest.

In Latin America, Venezuela remained paused ahead of its presidential elections, now scheduled on May 20.

Petroleos de Venezuela SA bonds due 2024 and 2026 were around 26¼ to 26½, which was lower compared to the recent range of mid-27, a New York-based analyst said.

Venezuela and PDVSA bonds have moved sideways, because they are mainly “politically driven,” so the market is “waiting for the election, and we still have one month to go,” the analyst said.

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