Investors show caution; Turkey sentiment improves; Saudi Arabia busy in trading

By Christine Van Dusen

Atlanta, March 17 – Emerging markets assets remained mostly solid while investors showed caution on Friday, following the results of the Dutch election and the Federal Reserve’s decision to hike rates.

“With the key events for the week now behind us, we’re looking into a calmer day towards the weekend,” a London-based analyst said Friday morning.

Looking to Turkey, the Central Bank raised the late-liquidity window rate again, in line with consensus, the analyst said.

“This is expected to increase the cost of funding for commercial banks by 40 basis points to 50 bps to around 11.2% to 11.3%,” he said.

The move still managed to boost sentiment, he said.

In trading from the Middle East, bonds from Saudi Arabia saw some activity.

“It was a volatile week in oil markets, driven by the OPEC monthly oil market report that saw stocks increasing globally while Saudi Arabia had also reported a bounce in production numbers,” the analyst said.

The sovereign’s 2 3/8% notes due in 2021 traded Friday at 97.56 bid, 97.81 offered.

The 3¼% notes due in 2026 moved to 96 bid, 96.35 offered.

Saudi Arabia’s 4½% notes due in 2046 were spotted at 97.37 bid, 97.87 offered on Friday.

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