Turkey better after rate hike, but lira drops back; Venezuela, PDVSA remain in stasis

By Rebecca Melvin

New York, May 24 – Turkey’s bonds jumped on Thursday after the Central Bank of the Republic of Turkey raised its lending rate by 3% in a move to help stem a free fall in the lira.

The Turkey 6 1/8% notes due 2028 were recently 93.518, which was up 1.42 point on the day. The

Argentina’s bonds were flattish on Thursday after the Argentina central bank opted this week to keep rates unchanged at 40% but retained a hawkish tone. It had hiked to 40% on May 4 to relieve a tumble in the Argentine peso.

A couple of new deals were in the market including Israel Chemicals Ltd.’s $600 million of notes and the Republic of Latvia’s €350 million new 10-year notes and €300 million add-on to existing 2¼% notes due 2047. But other deals remained on the calendar ahead of the long holiday weekend.

Venezuela and Petroleos de Venezuela SA bonds were little changed as has been the case all week as the debt seemed to find equilibrium in the days leading up to the presidential election last Sunday – which resulted in the re-election of Nicolas Maduro to a six-term.

Key bonds opened Monday within a quarter point of where they went out on Friday and through the week there was thin trading in a narrow range.

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