Trading quiet; Turkey set to steepen; Metinvest sees some demand; Ghana plans issuance

By Christine Van Dusen

Atlanta, Dec. 24 – Trading of emerging markets assets was quiet on Thursday, with liquidity thin on Christmas Eve and names like Brazil mostly unchanged while Turkey’s curve appeared to be on the cusp of steepening.

“The long end was trading well and the curve has stayed flat as we had buyers of duration, but it looks like we are about to steepen as we see real-money buyers appear in the belly,” a London-based trader said. “Cash looks a bit tight to credit default swaps so may lag the move there.”

Ukraine-based Metinvest BV saw a tiny bit of demand, with quotes pushed up about a point, said Fyodor Bagnenko, a fixed-income trader from Dragon Capital.

Looking to Azerbaijan, trading was quiet on Thursday, but traders were looking ahead to the new year, when the sovereign’s bonds are expected to be a good value and “better prepared for a continued downward cycle in commodities,” he said.

Overall, Thursday looked to be “another firm session on what will be limited activity,” another trader said.

“Commodities bouncing on hopes that United States growth with a stable China will be able to hold up the macro picture,” he said.

Said another trader, “No screen activity and some bid-offer lists popping up, but nothing notable.”

In other news, Ghana has received parliamentary approval to issue a $1 billion eurobond due in 2016, a market source said.

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