Asia ends higher for the week; Eastern Europe sees consistent deal flow; LatAm sees buyers

By Rebecca Melvin

New York, June 2 – Emerging markets saw a continuing positive tone as the holiday-shortened week concluded on Friday amid strength in U.S. Treasuries and equities on the back of mixed jobs data.

Chinese banks that have been replenishing bonds have been a focus of Asia, new corporate and sovereign paper was being eyed in Latin America, and consistent deal flow in Eastern Europe has seen strong investor demand, market sources said.

In recent weeks China bank deals have included five Bank of China Ltd. subsidiaries pricing $3.07 billion equivalent of notes.

In addition, Beijing-based Export-Import Bank of China (Chexim) said Friday it is offering €500 million of five-year senior notes and $300 million of three-year senior floating rate notes.

Most emerging markets trade in tandem, and the positive tone was present elsewhere, the trader said.

Guatemala’s recently priced $500 million 4 3/8% notes due 2027 were quoted at 99.1 bid, 99.27 offered at mid-morning, up from its pricing at a discount to par of 99. And Peru’s state-owned Petroleos del Peru Petroperu SA (Petroperu) began a roadshow on Friday for up to a proposed $2 billion of unsecured notes, a market source said.

Also in the new-deal space, Russia-based OJSC MMC Norilsk Nickel’s $500 million of 3.85% five-year bonds, which priced Thursday, were quoted at 99.97 bid, 100.13 offered.

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