Oman sells notes; Turkey deals with downgrades; debate, oil get attention; Cemex takes a hit

By Christine Van Dusen

Atlanta, Sept. 27 – Oman sold notes on a Tuesday that saw investors focusing on the U.S. presidential debate, oil prices and Turkey.

“We’re off to a stronger start this morning, partly also due to yesterday’s U.S. presidential debate,” a London-based analyst said. “The aftermath saw the Mexican peso as the big winner, but general market sentiment seems to benefit from the positive sentiment this morning as well.”

Meanwhile, oil prices remained in the spotlight ahead of Wednesday’s OPEC meeting on the sidelines of the International Energy Forum in Algiers.

From Latin America, corporates opened with a “slightly better tone, although some credits so far are still languishing,” a New York-based trader said.

The curve for Mexico-based Cemex SAB de CV, which “took a hit” on Monday, moved a little bit higher “with no institutional buy support at all,” he said.

By day’s end, most emerging markets bonds were soft, with spreads moving 3 basis points to 5 bps wider, overall, a trader said.

Looking to Turkey, sovereign credit entered the session on Tuesday about 20 bps wider and corporate bonds 30 bps to 40 bps wider, following the country’s downgrade from Moody’s Investors Service.

Five-year credit default swaps spreads moved to 260 bps, a trader said.

Investors were also eyeing Turkish banks after Moody’s took actions, the analyst said.

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