Turkey dollar bonds mixed as lira drops further; Venezuela flat to lower after drone attack

By Rebecca Melvin

New York, Aug. 6 – Turkey’s dollar bonds were mixed on Monday as the Turkish lira dropped further into record negative territory against the dollar amid worsening tensions with the United States and economic troubles at home. Turkey’s local-currency debt and stocks fell.

The yield on Turkey’s 5 1/8% notes due October 2028 ticked a little lower by 0.06% to 7.4944%. Other sovereign bonds, including the February 2028 notes, saw slightly higher yields, however.

Meanwhile Venezuela’s sovereign bonds and those of Petroleos de Venezuela SA did not react much to the news of a drone attack against president Nicolas Maduro on Saturday. Two drones loaded with explosives came within yards of the president, who was speaking at an outside event.

But Venezuela bonds were only slightly weaker on Monday, and PSVSA was unchanged, a New York-based trader said.

The PDVSA 8˝% notes due 2020 were seen 91 bid, 92 offered, which was unchanged on the day. The PDVSA 2020 bonds are the only Venezuelan bonds that are not in default.

Elsewhere Latin America’s debt market were “very quiet,” a second New York-based market source said.

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