Investors watch ECB; issuance from Country Garden; Turkey tightens; Pemex tranches trade

By Christine Van Dusen

Atlanta, Dec. 7 – China’s Country Garden Holdings Co. Ltd. sold notes on Wednesday as investors watched the meeting of the European Central Bank, which reviewed its bond-buying program.

“Most economists predict the two-day session will culminate in a decision to prolong asset purchases after March at the current monthly pace of €80 billion euros for about six months,” according to a report from Schildershoven Finance BV.

Investors are not expecting action on interest rates, the report said. The risk now “is of a failure to meet market expectations.”

For bonds, the ECB’s decision “may be as serious as the possible Federal Reserve decision next week,” the report said.

Looking to Turkey, bonds moved tighter on Wednesday, with the long end narrowing 15 basis points and moving up 1˝ points, a London-based trader said.

Investors were also keeping an eye on Mexico’s Petroleos Mexicanos SAB de CV (Pemex), which – after auctioning its first blocks to international oil companies – on Tuesday priced a three-tranche issue of $5.5 billion notes due in five and 10 years.

In other news, Agricultural Bank of China Ltd. will issue $500 million 2 3/8% notes due 2019, according to a company filing.

© 2015 Prospect News.
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