Sri Lanka, China National Bluestar issue bonds; Asian bonds widen; Lat-Am prices fluctuate

By Christine Van Dusen

Atlanta, May 28 – Some risk assets rebounded on Thursday while emerging markets investors were distracted by the upcoming election in Turkey, the continuing turmoil in Greece and the vote for the president of FIFA, which follows the news that several top officials of the soccer organization were arrested on corruption charges.

Against this backdrop, Sri Lanka and China National Bluestar Group Co. Ltd. were among the issuers to print new bonds.

U.S. Treasuries were firm and about 3 basis points tighter on Thursday, and bank paper from Turkey moved wider on limited flows, a London-based trader said.

From Asia, credit lagged the rebound, with high-grade cash opening Thursday unchanged to a couple of basis points wider, another trader said.

“The sell-off in China equities pushed spreads further, with China high-grade cash closing 2 bps to 4 bps wider,” he said. “The rest of the other sectors managed to end the day unscathed and unchanged.”

Oil and gas names closed the session about 1 bp to 3 bps wider, with Cnooc Ltd.’s 2025s moving out 3 bps, he said. And China Petroleum & Chemical Corp. (Sinopec Group) curve saw support, with the 2025s trading 2 bps wider.

“China bank seniors held in unchanged,” he said.

Looking to Latin America, bonds were a “touch higher to unchanged,” with low-beta spreads slightly wider, a New York-based trader said.

© 2015 Prospect News.
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