Asian bonds firm; Cnooc notes get attention; Brazil sees some action; Codelco outperforms

By Christine Van Dusen

Atlanta, May 4 – Asian bonds firmed slightly on Monday morning on the move in U.S. Treasury rates and Venezuela and PDVSA managed to build on the positive momentum of the previous week on a mostly slow day for emerging markets assets.

“Liquidity is very thin today, with Japan and the United Kingdom out on holidays,” a London-based trader said.

Asian high-grade bonds tightened about 2 basis points, with most of the activity focusing on new issues.

The new issue of notes from Hong Kong’s Cnooc received some attention during the early part of the session, with the new 3½% 2025 notes that priced at 99.075 to yield Treasuries plus 160 bps trading at 158 bps before closing in Asia at 158 bps bid, 156 bps offered.

From Latin America, trading was mostly quiet on Monday morning, with bonds from Brazil at first widening from Friday’s close, a New York-based trader said.

Meanwhile, Argentina’s bonds were mostly unchanged or slightly higher, with the Boden 2015s seen at 99.15.

Most bonds from Mexico were unchanged on Monday, with prices moving along with Treasuries, another trader said, and high-grade names were quiet.

Market sources were also whispering about a possible issue of up to $1 billion of bonds from Chile.

An outlier from there, Corporacion Nacional del Cobre de Chile (Codelco), continued to tighten on some real-money demand, a trader said.

© 2015 Prospect News.
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