Issuance from Zhengzhou Yutong Bus; Pacific Rubiales in news again; investors watch FOMC

By Christine Van Dusen

Atlanta, May 20 – China’s Zhengzhou Yutong Bus Co. sold notes on a Wednesday that saw softer trading of Asian bonds and a focus on Pacific Rubiales Energy Corp. as investors watched for the Federal Open Market Committee’s minutes.

A mixed tone in the investment-grade space moved bonds from China 2 basis points to 3 bps tighter, a London-based trader said, and investors continued to show interest in the recent issues from Cnooc Ltd., China Petroleum & Chemical Corp. (Sinopec) and Sinochem Group.

“Financials are also moving tighter,” he said. “On the high-yield front we’re relatively weaker, especially on the China property front, which is 25 cents to 50 cents lower.”

Asian sovereign opened weakly on Wednesday on the overnight move in Treasuries, but buyers emerged, “looking to scoop the pull-back,” he said.

From Latin America, Toronto-based and Colombia-focused Pacific Rubiales was once again in the news, this time after the O’Hara Administration group of Venezuelan investors said they may block a bid from Alfa SAB de CV and Harbour Energy Ltd. by buying more shares in Pacific Rubiales.

The company’s curve traded “very thinly” in the Street on Wednesday morning in response, a New York-based trader said, with prices remaining close to Tuesday’s levels.

Later in the session, Pacific Rubiales’ notes moved higher, with the 2023s and 2025s seen at 85, as investors speculated whether the acquisition was going to proceed.

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