Issuance from Export-Import Bank of China, Shanghai Pudong Development; EM trading mixed

By Christine Van Dusen

Atlanta, Sept. 9 – Export-Import Bank of China and China’s Shanghai Pudong Development Bank Co. Ltd. sold notes on a mixed Wednesday for emerging markets assets.

“Fairly positive opening, with the strength in developed markets carrying over to today,” a London-based trader said. “Asia equities are strong, with some belief in a soft landing, opposed to a hard landing for China.”

From Asia, investment-grade bonds closed the morning session about 3 basis points to 5 bps tighter, a trader said.

“Tone was firm but demand was mixed,” he said. “China oils closed 4 bps to 8 bps tighter, with on-the-run names outperforming.”

Bonds from India closed the early session 3 bps to 5 bps tighter, with better buying seen for corporate notes, he said.

“Speculation builds on further fiscal and monetary support in the pipeline, pushing EM a step forward after taking two back,” another trader said. “All risk indicators are looking fairly bullish, with rates selling off with a steepening bias, equities up and credit indices tighter.”

From the Middle East, spreads tightened on the better tone in broader markets, another trader said.

Bahrain bonds were firm, he said, though the 2044s lagged slightly. And Saudi Electricity Co.’s bonds experienced mixed flow.

Perpetuals from the Gulf region were mixed, he said, with buyers of Dubai Islamic Bank PJSC.

And Burgan Bank’s 2020s and perpetuals were better offered on Wednesday, he said.

© 2015 Prospect News.
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