Bahrain sells $2 billion sukuk; rates, oil prices stabilize; Turkey outperforms; OFCB on deck

By Christine Van Dusen

Atlanta, Oct. 4 – Bahrain moved forward with a $2 billion two-tranche deal on Tuesday amid upbeat manufacturing and payrolls data from the United States.

“We had a fairly calm start into the new quarter in terms of secondary market activity, but today’s primary market activity – the Bahrain dual-tranche – will likely push things going,” a London-based analyst said. “Led by Asia and with stabilizing rates and oil prices, we see a modestly positive start into the day.”

Turkey also received some attention on Tuesday, as parliament voted to extend the state of emergency for another three months. “Amid such a state, the purging is ongoing and today’s headlines saw the suspension of almost 13,000 police officers,” the analyst said.

Against this backdrop, 10-year bonds from Turkey outperformed on real-money buying, a trader said.

“Last week, no buyers. This week, no sellers,” he said. “Active morning, about 3 basis points to 5 bps tighter.”

By the end of the day, Turkish bonds were 10 bps tighter, another trader said.

From the Middle East, some good interest was shown for bonds and spread performed again on the back of rates moves, a London-based trader said.

In other news, Russia’s OFCB Capital plc is looking to issue dollar-denominated loan participation notes, according to an announcement from the company.

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