KOKS preps deal; Greece misses payment as bailout expires; Pacific Rubiales battle goes on

By Christine Van Dusen

Atlanta, June 30 – Russia’s KOKS Group readied a new deal on Tuesday as Greece’s bailout program expired and the debt-saddled sovereign missed its payment to the International Monetary Fund.

With this as the backdrop, Asian bonds put in a “slightly more constructive” session on Tuesday morning, with spreads consolidating after the previous day’s move wider, a London-based trader said.

“Some recent issues remain under pressure,” he said. “Older issues are gathering some offers in the Street.”

Among Asian sovereigns, Philippines’ long-dated bonds have been narrowing, moving in as much as 30 basis points since June 16, he said.

“Indonesia’s long end has tightened 40 bps since last Wednesday, however this has retraced around 50% of the move, causing dealers to step in on the bid here,” he said. “Overnight flows were balanced, so locals seem to be the driver here.”

Indonesia’s 2043s outperformed, moving up 1 point.

The tone remained fairly solid into the end of the Asian session, with slightly better buying of investment-grade names and some two-way activity for weakened bonds, he said.

Looking to Latin America-focused Pacific Rubiales Energy Corp., a few Street prints were sighted on Tuesday at lower levels, a New York-based trader said.

Bondholders continue to argue about whether the takeover bid from Mexico’s Alfa SAB de CV and Harbour Energy Ltd. is big enough and whether the deal should go through.

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