Mexico bonds dip, South Africa performs; oil, data on radar screens; Saudi Arabia active

By Christine Van Dusen

Atlanta, Nov. 1 – Bonds from Mexico dipped and South Africa outperformed on Tuesday as oil prices mostly stabilized, investors awaited economic data from the United States, and much of Europe was out for the All Saints Day holiday.

“We expect flat trading today with moderate price growth,” according to a report from Schildershoven Finance BV.

Said a London-based analyst, “Oil prices continued to plummet yesterday but stabilized overnight, with both WTI and Brent crude remaining somewhat distant from the $50-barrel threshold.”

From Latin America, prices from bonds from Mexico were lower, with mixed performance across the curve, a trader said.

“The long end seems to be doing a bit better,” he said.

Investors were keeping an eye on South Africa, where bonds outperformed on reports that the National Prosecuting Authority would drop fraud charges against Finance Minister Gordhan, the analyst said.

From Turkey, the only part of the curve that traded well was the front end, another trader said.

Also on Tuesday, investors were looking at Russia’s Novolipetsk Steel’s (NLMK) strong third-quarter financial results, released this week.

And Hungary was upgraded by Moody’s Investors Service.

Trading of Middle Eastern bonds was “very active” on Tuesday, according to a London-based trader.

Saudi Arabia’s new megadeal saw some “price gyrations” as a result of the move in rates, he said.

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