Spread tightens on Iraq notes due 2023; Qatar banks in focus; primary market hushed

By Rebecca Melvin

New York, Oct. 17 – The Republic of Iraq’s 6¾% notes due 2023, of which $1 billion priced on Aug. 2, were tighter by about 25 basis points early Tuesday after widening out the past week.

On Monday the Iraqi bonds closed about 10 bps wider.

Elsewhere, Qatar National Bank reported strong results for its third quarter, with the bank’s financials remaining strong despite the ongoing crisis between Qatar and a Saudi-led group of countries demanding changes regarding what it views as policies supportive of terrorism.

EM market players are watching for new Qatari debt, including Qatar National Bank, which needs to refinance funding that is maturing in the next year.

Kenya was in focus as street protests started after the main opposition party decided to withdraw from a repeat election slated for Oct. 26. Kenya’s 6 7/8% notes due 2024 were little changed by about 10 bps wider over the week.

The emerging primary markets were quiet for a second straight day while the story in financial markets continued to be the run up in equities and the fact that the Dow Jones industrial average crossed over the threshold of 23,000 for the first time. The Dow traded at that level briefly before slipping back and closing a hair below it at 22,997.44, which was up 40.48 points or 0.2%.

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