Primary hosts China’s Agricultural Bank, Minsheng Banking; Treasuries give support to EM

By Christine Van Dusen

Atlanta, May 15 – Beijing-based Agricultural Bank of China Ltd., Ecuador and China Minsheng Banking Corp. Ltd. sold notes on Friday as many bonds remained firm – with some Latin American paper reaching its best levels of the week – amid support by the latest moves in U.S. Treasuries and a positive equities backdrop.

Still, activity was somewhat quiet, a New York-based trader said.

Brazil’s five-year credit default swaps spreads traded at 229 basis points from 230 bps, while Mexico’s five-year notes were unchanged, he said, but Venezuela and PDVSA were slightly weaker.

“Seems we are trying to establish where cash prices should be trading with the big overnight move in rates,” he said.

By the end of the session, Latin American cash prices had chased Treasuries higher, another New York trader said.

Latin American corporates traded “mostly sideways” on Friday, “but overall the tone felt better again today, with stronger bids and more buyers surfacing,” another trader said.

From the Middle East, the new issue of notes from Dubai-based DP World “got some traction,” a London-based trader said.

Looking to Asia, high-grade cash bonds were seen moving 1 bp to 3 bps tighter on Friday morning, with real-money demand remaining strong.

In other news, Albania is looking to issue €300 million of bonds on the international markets, a market source said.

© 2015 Prospect News.
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