Issuance from Gazprom; Turkcell notes inch lower, Pakistan improves; Asia remains firm

By Christine Van Dusen

Atlanta, Oct. 8 – Russia’s OJSC Gazprom sold notes on a Thursday that saw the new issue from Turkey’s Turkcell Iletisim Hizmetleri AS dip while Asian bonds consolidated.

“We did almost rally for a week, but given the 50 basis points-plus spread tightening in liquid sovereigns, it was inevitable that we were going to take a pause,” a London-based trader said. “Risk markets turned, with U.S. Treasuries better bid and the S&P 500 off its highs.”

Five-year credit default swaps spreads for Turkey, South Africa and Russia started the day 15 bps off their tightest levels, while Brazil was 40 bps wider.

“The Turkey sovereign traded super-well, only to get hit into the close, and shorts looked to push the trade,” he said. “It does feel like there is a short base in cash now, as any stability in the market leads to the Street bidding paper.”

The new issue of notes from Turkey’s Turkcell – $500 million 5¾% notes due 2025 that priced at 98.509 to yield 5.95% – traded Thursday morning at a high of 98.65, a low of 97.50 and was most active in the 98 area, another trader said.

Bonds from Asia consolidated on Thursday but the tone remained firm, with spreads closing unchanged to 3 bps tighter, a trader said.

And the 8¼% notes due 2025 that Pakistan recently priced at par traded well on Thursday, a trader said.

© 2015 Prospect News.
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