Bharat readies issuance; oil prices, Trump speech on market’s mind; Turkey underperforms

By Christine Van Dusen

Atlanta, Jan. 10 – India’s Bharat Petroleum Corp. Ltd. made its way to the primary market on Tuesday as emerging markets investors eyed oil prices and awaited President-elect Donald Trump’s Wednesday news conference.

“Crude oil prices have started on the weaker foot as doubts are arising on whether OPEC and non-OPEC producers will stick to their deal to cut output while there are also fears about rising output from the United States and other markets,” a London-based analyst said.

Against this backdrop, trading of emerging markets credit was mixed, the analyst said, with Turkey the underperformer.

“Despite the lack of any new stories, the Turkish lira is testing new record levels at 3.77 per dollar this morning,” he said. “As a result, we see sovereign credit default swaps, up 3 basis points to 288 bps, and cash widening further versus yesterday.”

Indeed, Turkey’s bonds were about 3 bps wider on Wednesday morning, at 288 bps.

Yields on bonds from Kazakhstan are expected to continue to decline amid higher oil prices, even after the National Bank of Kazakhstan decided to keep the key rate unchanged, according to a report from Schildershoven Finance BV.

In deal-related news, India’s NTPC Ltd. scheduled a roadshow to market a 10-year issue of euro-denominated notes.

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