Issuance from Bank of Sharjah; Petrobras brings 100-year deal; volatile but quiet for EM

By Christine Van Dusen

Atlanta, June 1 – Bank of Sharjah PJSC sold notes and Petroleo Brasileiro SA (Petrobras) moved ahead on a 100-year issue on a quieter Monday for emerging markets assets – particularly those from Asia – as Singapore was out on a holiday.

“Both China May manufacturing and non-manufacturing [data] came in line with expectations, and China equities bounced higher,” a London-based trader said. “Credit, on the other hand, still feels soft, with high-grade cash unchanged to a touch wider.”

Though flows were light, some Chinese corporates saw two-way activity, including China Petroleum & Chemical Corp.’s (Sinopec Group) 2020 notes.

“Malaysia and Korea closed unchanged,” he said. “India marked a couple of basis points wider.”

Said another trader: “Position-cutting into month-end on Friday looks to have done the trick, as flows today have been very benign.”

Investors showed some interest in long-end bonds from Indonesia, but inquiries weren’t aggressive, he said.

The 2044s were down ½ point while the rest of the curve was mostly unchanged.

“Philippines cash is holding in, flat in the front end,” he said. “Off-the-run belly is up ¼ point while the 2040s are up 1/8 point. Again, volumes are minimal.”

In deal-related news, market sources were whispering about a possible issue from Jordan in June or July and up to $400 million of notes from African Export-Import Bank.

© 2015 Prospect News.
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