Gabon sells notes; mixed trading amid Treasury turbulence; recent Asian issues draw orders

By Christine Van Dusen

Atlanta, June 9 – Gabon was among the issuers to print notes on Tuesday as undulations in U.S. Treasury rates made for a mixed session for emerging markets assets.

“Busy day, all told,” a London-based trader said. “The 2.42% on the 10-year Treasury has brought some paper out. Although, as usual, there are enough squeezed technical bonds out there that remain. I get the sense they are slowly but surely being taken out.”

Spreads were “all over the place, depending on flows,” he said. “Liquidity remains challenging and, as I keep barking on about, cannot improve into Ramadan and summer, which are drawing closer and closer.”

Looking to Latin America, spreads were mixed for low-beta bonds, which moved to their widest points by late in the day, a New York-based trader said.

In deal-related news, China’s Haikou Meilan International Airport and Peru’s Lima Metro Line 2 Finance Ltd. gave guidance while market sources whispered about a possible $1 billion issue from Pakistan in 2016.

Also, the $300 million issue of 3¼% notes that Korea Hydro & Nuclear Power Co. priced on Monday drew a final order book of $1.25 billion from 80 accounts, a market source said.

China-based Zhongrong International Trust Co. Ltd.’s new $225 million 6% notes due June 15, 2018 that priced Monday saw a final order book at $575 million from 64 accounts.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.