New deal from Teva Pharmaceuticals; risk aversion grows; Asia mixed, Lat-Am weakens

By Christine Van Dusen

Atlanta, March 24 – Israel’s Teva Pharmaceutical Industries Ltd. was among the emerging markets issuers to print notes on Tuesday as risk aversion increased, Asian credits were mixed and Latin American bonds opened tighter before weakness crept in.

The recent issue of notes from Singapore’s BOC Aviation Pte. Ltd. – 3% notes due 3030 that priced at 99.458 to yield 3.118%, or Treasuries plus 170 basis points – was firm in trading and moved to a tight of 158 bps before spending most of its time at about 160 bps, a trader said.

“Away from that, the China technology space closed unchanged, with real-money profit-taking after [Tencent Holdings Ltd.] was upgraded,” he said.

Also from China, most high-grade property bonds moved tighter after China Overseas Land and Investment received an asset injection from its parent company, he said.

Meanwhile, bonds from India saw some support, as buyers gravitated to Icici.

“Ten-year corporates remain well-offered, but the lack of supply supported the market,” he said.

Looking to Latin America, bonds opened tighter and higher but grew weaker amid market contagion, a New York-based trader said.

Brazil-based Petroleo Brasileiro SA opened 10 bps narrower but moved back to the previous day’s levels, as did bonds from Brazil-based Vale SA, he said.

Clients were better sellers of investment-grade and high-grade names, he said, as investors got skittish.

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