Primary market hosts Argentina; oil prices in focus; Egypt ‘on track’; Turkey sees orders

By Christine Van Dusen

Atlanta, Jan. 19 – Argentina sold new notes on a distracted Thursday, as investors eyed President-elect Donald Trump’s controversial cabinet appointments and awaited his upcoming inauguration.

Oil prices were in the spotlight, too, after the head of the International Energy Agency said he expects a significant rebound in U.S. oil production.

“Nonetheless, despite a high level of uncertainty and speculations in the market, the probability of further oil price growth is high,” according to a report from Schildershoven Finance BV.

Market-watchers were also looking at Egypt after the International Monetary Fund released its report on the sovereign’s Extended Fund Facility.

The IMF’s mission chief “appeared to be satisfied with the progress made by the government and central bank,” a London-based analyst said. “Egypt was on track to meet the required benchmarks and unlock the next loan tranche, potentially in late April.”

This comes as Egypt holds investor meetings ahead of a bond issue that could total $2.5 billion in five-, 10- and 30-year tranches.

Meanwhile, Turkey’s new issue of $2 billion 6% notes due March 25, 2027 that priced Wednesday at 98.858 to yield 6.15%, or Treasuries plus 375.7 basis points, drew an order book that was more than three-times oversubscribed, a market source said.

About 49% of the bonds were sold in the United States, 26% in the United Kingdom, 11% in Turkey and 11% in Europe.

© 2015 Prospect News.
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