Shinsegae sells notes; Treasuries rally, dip; Sinopec tightens; investor call for Afreximbank

By Christine Van Dusen

Atlanta, May 5 – South Korea’s Shinsegae Co. Ltd. sold notes on a firm Tuesday morning for Asian bonds that saw more buyers than sellers as U.S. Treasury rates rallied, then moved lower.

High-grade cash names from Asia closed the session unchanged to 3 basis points tighter, a London-based trader said.

A wave of buying “drove spreads tighter, but post-London open, U.S. Treasuries rallied, and we had some profit-taking flow from fast money,” he said.

The new issue of 3½% notes due 2025 from Hong Kong’s Cnooc, which priced at 99.075 to yield Treasuries plus 160 bps, was spotted Tuesday at 154 bps before closing 4 bps tighter at 156 bps bid, 154 bps offered.

China Petrochemical & Chemical Corp.’s (Sinopec) new 3¼% notes due 2025 that priced at 99.022 to yield Treasuries plus 145 bps moved to 141 bps and then closed at 143 bps bid, 140 bps offered, or 4 bps tighter.

“The new Sinopec 30-year’s spreads were a couple tighter at 159 bps bid, 154 bps offered,” he said.

In other news, Egypt’s African Export-Import Bank (Afreximbank) will hold an investor update call on Friday, a market source said.

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