Uruguay prices notes on slightly wider but higher day for EM; investors watch Yapi Kredi

By Christine Van Dusen

Atlanta, July 13 – Uruguay priced notes on a slightly wider but higher Wednesday for emerging markets assets, with five-year credit default swaps spreads for Brazil inching out while cash prices moved up on the back of a rally in U.S. Treasuries.

“The market finally got some dollar sovereign supply,” a New York-based trader said.

Mexico’s credit default swaps closed at 136 basis points from 135 bps, a New York-based trader said.

High-yield names from the region were mixed, with Venezuela moving lower on oil weakness while Argentina moved higher, he said.

Venezuela’s 2027s closed at 48.30 from 49, PDVSA’s 2017s finished at 73.20 from 73.50 and Argentina’s Bonar 2024s moved to 116.75 from 116.625. The latter sovereign’s 2026s, meanwhile, moved up to 109.25 from 108.625, he said.

“Volumes were subdued for the most part, with two-way inquiry throughout the day,” he said.

Also on Wednesday, investors were keeping an eye on Turkey-based Yapi ve Kredi Bankasi AS’ (Yapi Kredi) new issue of $550 million 4˝% notes due July 19, 2023 that priced Tuesday at 99.26 to yield 4 5/8%, or mid-swaps plus 342.6 bps.

On Wednesday morning the notes moved to 98.65 bid, 98.75 offered, a trader said.

“Some early flow in the new Yapi as some nervous hands decide their allocation was a little too good,” he said.

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