Spreads a bit tighter for Turkey sovereign curve, banks; Inkia reopens 5 7/8% notes

By Rebecca Melvin

New York, Dec. 11 – Emerging market flows were muted on Monday as market players kept an eye on rates ahead of meetings this week of the Federal Reserve, the European Central Bank and the Bank of England.

There was a bit of spread tightening in both the sovereign curve and financial credits of Turkey despite a bid in U.S. Treasuries in the early going, a market source said.

The Turkey sovereign curve was about 4 basis points to 5 bps tighter, and the banks were also tighter while somewhat mixed in other parts of Turkish debt.

Good data for Turkey’s gross domestic product and current accounts were supportive , the market source said.

U.S. Treasuries moved higher in the early session amid headlines that an explosive device had been set off in the New York City subway system, but changed direction later on as it became understood that a terrorist attack had been averted and the man who detonated the device only injured himself and three others.

Yields have been on the rise in recent sessions, but have traded largely in a range. Rate raises are expected by the central banks this week.

Inkia Energy Ltd. priced a $150 million add on to its 5 7/8% 10-year senior notes (expected rating: /BB/) on Monday at par, according to a market source.

The original $450 million of notes priced on Nov. 9.

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