Venezuela, PDVSA trade at low end of recent range; emerging CEEMEA markets see better bid

By Rebecca Melvin

New York, Aug. 30 – Venezuela and Petroleos de Venezuela SA bonds were trading at the low end of their recent ranges on Wednesday and otherwise not reacting very much to news that Cantor Fitzgerald LP has stopped trading Venezuela debt on the heels of U.S. restrictions imposed on trading last Friday, a market source said.

PDVSA’s 8½% notes due 2020 were trading at 72½ bid, 73½ offered on Wednesday.

The PDVSA 8½% notes due 2017 were quoted at 89½ bid, 90½ offered.

While the weakest issues, including the PDVSA 6% notes due 2026, were trading around 30 bid, 31 offered.

Overall, emerging markets in the Central & Eastern Europe, Middle East and Africa were better bid Wednesday as investors looked to put money to work ahead of August month end and the upcoming Labor Day holiday in the United States and Eid holidays in the Middle East and parts of Africa, some of which are already underway.

Kazakhstan’s sovereign bonds were an outperformer with the whole sovereign curve better bid and spreads tighter by about 7 to 10 basis points, a London-based trader said.

The move reversed Tuesday’s action, which saw things soften on the back of concerns related to North Korea’s missile launch over Japan, and despite lower oil prices and higher gas prices as Tropical Storm Harvey reduced refining capacity in the Texas Gulf Coast.

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