EM puts in mixed performance; Trinidad and Tobago, Adani bring dollar deals; Dubai banks eyed

By Christine Van Dusen

Atlanta, July 28 – Trinidad and Tobago and India’s Adani Transmission Ltd. advanced deals on a mixed Thursday for many emerging markets assets, including those from Latin America, which saw spreads widen while cash prices showed more variety.

“Following the FOMC meeting yesterday, we have seen a flattening of the U.S. Treasury curve as the 10-year edged lower towards the 1½% threshold,” a London-based analyst said. “Investors are looking for clearer indications on whether and when to raise, despite the Fed’s upgrade in the assessment of the U.S. economy and the mentioning that ‘near-term risks to the economic outlook have diminished.’”

He expects the next rate hike will come either at the meetings on Dec. 13 and 14 or later in the first quarter of 2017.

Looking to Latin America, it was a “mixed bag” for the markets on Thursday, with spreads wider and “cash prices mixed, depending on the maturity and credit,” a New York-based trader said.

“Flows continue to see better buying,” he said. “For overnight risk, we have the Bank of Japan, which should serve up some volatility when we get in tomorrow morning.”

Bonds from Dubai benefitted on Thursday from the partial recovery in oil prices, he said, with bank curves remaining at “very tight levels.”

Investors were looking ahead to the release of second-quarter earnings from Turkish banks, he said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.