New issues from Turkey’s Yapi Kredi, National Bank of Oman; risk-on remains; Lat-Am mixed

By Christine Van Dusen

Atlanta, July 12 – Turkey’s Yapi ve Kredi Bankasi AS (Yapi Kredi) and National Bank of Oman SAOG sold notes on a mostly solid day for emerging markets assets, though bonds from Latin America were mixed as a result of Treasury moves.

“First time in a number of sessions where we are seeing mixed performance across different countries, and to a lesser degree, sectors as well,” a New York-based trader said. “Chile high-grade performance is unchanged to higher, depending on the credit.”

Banks and corporates from Colombia, however, “feel stagnant and are actually unchanged to a bit weaker,” he said. “Mexican high-grade is grinding higher, despite the Treasury move.”

Mexico-based Cemex SAB de CV saw its bonds start to move higher again, he said.

Brazil’s five-year credit default swaps spreads closed at 291 basis points from 304 bps, while Mexico’s moved to 135 bps from 143 bps, another trader said.

“Risk assets continue to perform well as EM spreads tighten once again,” he said. “Cash prices do experience some downward pressure and U.S. Treasuries see a meaningful backup. Cash bonds did start to stabilize as the reach for yield and the risk-on theme helped to support elevated levels despite Treasury weakness.”

Middle Eastern bonds put in a “very busy day,” a London-based trader said.

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