Market ignores unrest in Gaza Strip, Ukraine; Russian bonds dip then recover; Lithuania up

By Christine Van Dusen

Atlanta, Aug. 19 – Market sentiment improved on Tuesday, even as a ceasefire between Palestinians and Israelis fell apart and violence erupted in a rebel-controlled city in Ukraine ahead of talks with Russia.

“Still, markets have reached a point of desensitization, where the broad rally continues for the time being,” according to a report from Commerzbank.

On Tuesday morning, Russian sovereign bonds declined only slightly, with the 3½% 2019 notes that priced at 99.195 trading at 99.38 bid, 99.88 offered after Monday’s level of 99½ bid, par offered.

Later on Tuesday, the notes recovered to 99.55 bid, 100.05 offered.

The sovereign’s 4 7/8% notes due 2023 that priced at 98.162 were spotted Tuesday morning at 99.95 bid, 100.45 offered after trading on Monday at 100¼ bid, 100¾ offered.

Later on Tuesday the notes moved back up, this time to 100½ bid, 101½ offered.

Russia’s 3 5/8% notes due in 2020 traded early Tuesday at 101.44 bid, 101.94 offered after Monday’s 101¼ bid, 101¾ offered. The notes priced at 99.533. Later on Tuesday the notes were spotted at 101½ bid, 102 offered.

So far this week, sovereign bonds from Ukraine have dipped, with the 2023s spotted at 89.80 bid, 91.10 offered, according to a report from Eavex Capital.

From emerging Europe, Lithuania’s 6 5/8% notes 2022 that priced at 99.102 traded Tuesday at 121½ bid, 122 offered.

Looking to Latin America, the session was firm but slow on Tuesday, a New York-based trader said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.