Wuzhou, Posadas, Mongolia issue notes; investors fatigued by Greece; Asian bonds weaker

By Christine Van Dusen

Atlanta, June 25 – China’s Wuzhou International Holdings Ltd., Mexico’s Grupo Posadas SAB de CV and Mongolia printed notes on a mostly quiet Thursday for emerging markets assets as investors showed fatigue, caused by the continuing economic crisis in Greece.

“It increasingly seems the market is tired of mixed messages, and any outcome will be a relief,” a London-based trader said.

Trading of notes from Asia was “very tame” on Thursday morning, he said. “But after the extensive spread rally seen over the past week and a half, some give-back is expected.”

Bonds from Philippines were slightly weaker, down about 1/8 point in the belly of the curve and ¼ point on the long end, he said.

“Couple of dealers exiting longs this morning, following some overnight customer selling on the longer end,” he said.

Later in the day, activity picked up a bit as Treasuries stabilized, another trader said.

“However, the general tone remains weak for Asia credit overnight,” he said. “Sovereigns are better-offered across Indonesia and Philippines, but seeing small buyers on the Sri Lanka and Mongolia front.”

High-grade corporate bonds from Asia were up or down 2 basis points across the board, he said.

In deal-related news, market sources were whispering about possible issues of notes from Korea Gas Corp., Korea National Oil Corp., PT Apexindo Pratama Duta Tbk and India’s NTPC Ltd.

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