Pakistan, Kenya are issuers in holiday-shortened week; Ukraine dips; Bulgaria deal ahead

By Christine Van Dusen

Atlanta, Nov. 26 – Pakistan and Kenya sold notes as bonds from Latin America stayed firm on Wednesday morning amid limited liquidity ahead of the Thanksgiving holiday in the United States.

Short-dated paper fared best as selling slowed, a New York-based trader said.

Mexico’s Cemex SAB de CV was better bid for the second day in a row while Brazil-based Vale SA tightened between 3 basis points and 5 bps.

“United States high-grade and high-yield continue to tighten and crank out new issues, global equity and rates are cruising along, our pipeline is not thick but consistent, and U.S. rates continue to stay in control,” he said. “No problem here, unless you count continuing oil price depression and China's questionable growth situation.”

Looking to Ukraine, sovereign bonds entered into the end of the week about a half-point lower as Russia reportedly continued to provide support to separatist rebels in Eastern Ukraine.

“Corporates and quasi-sovereigns were heavy as well,” said Svitlana Rusakova of Dragon Capital. “Not much was on the offer side, yet it did pressure prices, given the overall environment.”

In its new deal, Pakistan sold $1 billion 6 ¾% sukuk notes due Dec. 3, 2019 at par to yield 6¾%, a market source said.

The notes were talked at a yield in the 6 7/8% area.

In deal-related news on Wednesday, Bulgaria sought issuance and Industrial and Commercial Bank of China Ltd. set out on a roadshow.

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