Bank of India, Etisalat sell notes; investors await FOMC; Cnooc sets talk for jumbo deal

By Christine Van Dusen

Atlanta, April 28 – Bank of India (Jersey branch) and Abu Dhabi’s Emirates Telecommunications Corp. (Etisalat) sold notes on Tuesday as emerging markets investors became more cautious ahead of the meeting of the Federal Open Market Committee.

The tone for Asian bonds on Tuesday was softer, a London-based trader said, with high-grade cash bonds unchanged while new issues moved 1 basis point to 2 basis points wider.

“Client activity was skewed towards better selling, with accounts making space for the new issues,” he said.

The new notes from China Petrochemical & Chemical Corp. (Sinopec Group) – a five-tranche issue of dollar-denominated and euro-denominated notes due in five, 10, 30, three and seven years – received some attention in trading on Tuesday, he said.

This came as the company’s second-ranking executive was being investigated for alleged corruption.

From Latin America, bonds from Mexico were a bit weaker on Tuesday in response to some weakness in U.S. Treasuries, a New York-based trader said.

Investment-grade sovereigns were also a bit weaker, he said, as risk assets softened globally.

In other news, China’s Cnooc Ltd. set talk for a three-tranche issue of dollar-denominated notes due in five, 10 and 30 years, a market source said.

The five-year notes were talked at a spread of Treasuries plus 150 bps.

The 10-year notes were talked at 180 bps, and the 30-year notes were talked at a spread of 170 bps over Treasuries.

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