Morning Commentary: Turkey offers eight-year notes with updated talk; Yapi Kredi prices; Qatar up

By Colin Hanner

Chicago, June 7 – Updates from the new issue market came to light on Wednesday morning, with Republic of Turkey announcing new price guidance for its eight-year notes and Yapi ve Kredi Bankasi AS (Yapi Kredi) coming to market.

Turkey is offering euro-denominated benchmark eight-year notes with price talk at mid-swaps plus 280 basis points to 285 bps, tightening from earlier talking of mid-swaps plus 295 bps, a market source said.

Yapi Kredi sold 500 million Turkish lira three-year notes at par to yield 13 1/8% on Wednesday, a market source said.

As for the rest of the week, Tinkoff Bank and Ivory Coast could come to market, though a market source said that would be dependent on market conditions with the apparent lack of supply as compared to weeks prior.

“[At the] back end of May, you were still seeing Middle East supply coming through – that’s being impacted by Ramadan, plus geopolitics,” a market source said. “There are a number of issues still on the road; whether they print deals this week or whether they roll into next week, we will see.”

In the secondary space, Qatar, which reeled for the better part of two days from its forced breakoff from several Middle Eastern countries on Monday, was markedly higher on Wednesday.

Its five-year credit-default swaps were quoted at 90, a market source said, a 16 bps gain from Tuesday’s levels, according to media reports.

Its 3¼% notes due 2026 were up nearly 1 point to 98.57 bid, 98.87 offered.

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