Some EM bonds outperform after Fed news; MAF, Sri Lanka issues see action; Lebanon on deck

By Christine Van Dusen

Atlanta, Oct. 29 – China General Nuclear Power Corp. sold notes on Thursday as some emerging markets assets opened softer while others outperformed after the Federal Reserve indicated it could raise rates in December.

Selling of EM bonds was “orderly” on Thursday, morning, a trader said. “I think this could just be the month-end effect. October has been a decent month, turning those September losses into modest gains for most.”

Sovereign bonds from Turkey were under pressure amid some selling, he said, with real-money buying evaporating.

Latin American bonds were mixed, a New York-based trader said.

“Nervousness about U.S. rates creeps in, pulling bids on some high grade credits back, while others – Chile high grade –seem to have a nice ‘force field’ around them,” he said. “Still seeing overall better buying.”

In trading, the new issue of notes from Dubai’s Majid Al Futtaim Holding LLC – $500 million 4˝% notes due in 2025 that priced Tuesday at 99.841 to yield 4.52%, or mid-swaps plus 255 bps – traded Thursday morning at 99.80 bid, par offered.

In other trading, Sri Lanka’s new $1.5 billion 6.85% notes due in 2025 that came to the market Tuesday at par were seen at 99 3/8 bid, 99 5/8 offered on Thursday morning after trading down a point on Wednesday.

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