Colombia taps market for $1.5 billion; bonds from India, Korea see demand; Turkey quiet

By Christine Van Dusen

Atlanta, Sept. 21 – Colombia sold notes on Monday as investors evaluated the implications of the previous week’s Federal Open Market Committee meeting.

“After the Fed hold-off on hiking in its FOMC meeting last week, the focus will be on emerging markets central banks this week, including in Turkey, Morocco, Nigeria, Kenya and South Africa,” a trader said.

Bonds from Turkey were quiet on Monday morning, following Fitch Ratings' affirmation of the sovereign's stable rating on Friday, which pushed “fears of a downgrade further down the road,” a London-based trader said.

Turkey will hold a snap election on Nov. 1, during which the Justice and Development Party (AK Party) is “still not likely to win back the majority in parliament,” another trader said.

Flows for Turkish banks were two-way on improved valuations, the London trader said.

From Asia, bonds were firm, despite weakening equities, a trader said.

“Broader investment-grade cash closed the day unchanged to 2 basis points tighter while recent issues were a couple wider,” he said. “Flow was quiet in the morning, with a Japan holiday, but during the afternoon session we saw better buyers of risk.”

Notes from Korea were firm, he said, with Woori Bank Ltd.'s 2020 trading up.

“India outperformed, with the sector 1 bp to 3 bps tighter, and had good demand in both five-year financials and 10-year corporates,” he said.

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