Asian Development Bank issues notes; Treasury rally boosts EM cash prices; Jamaica on deck

By Christine Van Dusen

Atlanta, Aug. 10 – Philippines’ Asian Development Bank sold notes on a solid Wednesday for emerging markets, following weak productivity data from the United States and the news that the Bank of Europe did not meet its bond-buying goals.

“Emerging markets open strong,” a London-based trader said.

Oil prices also impacted the big picture on Wednesday.

Looking to Latin America, credit spreads finished mixed to unchanged on Wednesday as cash prices spiked higher and fixed income rallied, a New York-based trader said.

Brazil’s five-year credit default swaps spreads closed at 263 basis points from 265 bps, while Mexico’s was unchanged at 138 bps.

“Cash prices get a big boost from the Treasury rally, which has bonds finishing close to intraday highs,” he said. “Brazil and Mexico sovereigns outperform as the long end bonds finish higher by 1 point to 1˝ points.”

High-yield names from Latin American were mixed on the session, with PDVSA’s 2017s closing at 72 from 73.45, Venezuela’s 2027s down at 46.50 from 47.25 and Argentina’s Bonar 2024s up at 117.75 from 117.05. The 2026s closed at 110.75 from 109.875.

Jamaica released details on its upcoming notes issue, which will be a tap of the sovereign’s 8% dollar-denominated amortizing notes due March 15, 2039, according to a filing.

Jamaica will pay principal on the notes in three installments, with 33.33% due on March 15, 2037; 33.33% due on March 15, 2038; and 33.34% due on March 15, 2039.

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