China’s State Grid Europe, Dominican Republic print notes; EM bonds pick up after holiday

By Christine Van Dusen

Atlanta, Jan. 20 – After very limited activity on Monday, due to the holiday in the United States, trading of emerging markets bonds picked up on Tuesday, and China’s State Grid Europe Development plc sold notes.

Bonds from Russia opened the session 5 basis points wider on ever-lower oil prices, downgrades for several banks and a recent meeting of foreign ministers to discuss sanctions against the sovereign.

Experts say the conflict with Ukraine has “deteriorated significantly in the last two weeks,” a London-based analyst said.

In response, credit default swaps spreads widened on Tuesday morning, he said.

From Turkey, credit default swaps spreads opened flat.

“Although quiet yesterday, the banking sector, in particular, continues to see good trading flows,” he said.

One trader was keeping his eye on the upcoming issue of notes from Turkish lender Turkiye Vakiflar Bankasi TAO (Vakifbank), which set out on Monday for a roadshow to market the deal.

Tuesday’s session was a mostly quiet one for Central and emerging Europe, with spreads staying largely flat, a trader said.

Most perpetual bonds from the Middle East remained under pressure amid limited activity on Tuesday, a trader said.

The Dominican Republic launched a two-tranche issue of $2.5 billion bonds due in 2025 and 2045, a market source said.

In other deal-related news, Venezuela’s Corporacion Andina de Fomento (CAF) is looking to issue dollar-denominated notes, according to company filing.

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