Pemex prices notes; Asian bonds flat; Turkey, Ukraine outperform; Poland plans green bonds

By Christine Van Dusen

Atlanta, Dec. 6 – Mexico-based Petroleos Mexicanos SAB de CV (Pemex) priced notes on Tuesday amid flat trading of Asian bonds and better performance from Turkey and Ukraine.

The 2027 notes from China were down 2 basis points, while notes from Indonesia were up about 15 bps, a trader said.

In trading from Turkey, bonds were solid, a trader said.

“Turkey is outperforming, about 10 basis points to 12 bps tighter in cash, with buyers in the long end,” he said.

This came as Fitch Ratings reported expectations that Turkish banks will face pressure into the end of the year and the beginning of 2017. Though lenders showed modest growth during the first three quarters of 2016, they could take a hit as the lira depreciates, interest rates rise and the economy experiences weaker growth.

Meanwhile, trading of bonds from Ukraine has been “constructive” so far this week, said Svitlana Rusakova, of Dragon Capital (Cyprus) Ltd.

The sovereign has added about ¼ point across the board, with quasi-sovereigns moving up ½ point to ¾ point.

Corporates have been less liquid, she said.

In other news, Poland will set out on Wednesday to market an issue of euro-denominated green bonds due in five years, according to an announcement from the sovereign and a market source.

© 2015 Prospect News.
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