Slovenia sells bonds; Turkey notes in focus; Trump, Fed, oil on market’s mind; Egypt ahead

By Christine Van Dusen

Atlanta, Jan. 20 – Slovenia sold notes and Turkey’s new issue received attention on Friday as U.S. Treasuries ticked higher on comments from the Federal Reserve and investors focused on the presidential inauguration of Donald Trump.

“The timing and macro backdrop [of Turkey’s deal] split investor opinion, but in the end that 6.15% yield pulled in the punters,” a London-based trader said. “United States Treasuries continue to add some spice, but overall EM has shrugged it off, absorbed supply and motors on, for now.”

The comments from Federal Reserve Chair Janet Yellen, supporting gradual raising of interest rates, were good for emerging markets credit, a London-based analyst said.

“Market activity will however remain tepid ahead of Trump’s inauguration today,” he said. “Moreover, once inaugurated, Trump is expected to sign several executive actions to potentially reverse some of his predecessor’s orders, although there are no further details.”

Oil prices were also on the market’s mind and ended the week about 1% lower amid concerns that a boost in U.S. shale could outweigh production cuts by OPEC and non-OPEC producers.

Looking ahead, Egypt is expected to be the next sovereign issuer, following Monday’s conclusion of a roadshow for up to $2.5 billion in multiple tranches.

© 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.