Turkey under pressure; Klabin eyed; muted reaction in Venezuela, PDVSA bonds to election

By Rebecca Melvin

New York, May 21 – Turkey’s bonds were under pressure again on Monday as the Turkish lira slid another 2% on the day, while the Central & Eastern Europe Middle East & Africa region overall was largely quiet given many European countries on public holiday in observance of the Christian feast day of Pentecost, market sources said.

Turkey’s newer 6 1/8% notes due 2028, of which $2 billion priced in mid-April, were quoted at 91.31, which was down 0.13 on the day.

Brazil’s Klabin SA bonds were quiet on Monday, but they stand at 52-week lows. Still the outlook is bright for the rest of the year, and Gimme Credit remains constructive on the short-term outlook for Klabin. Its 5¼% bonds due 2024 stood at 97¾ on Monday, unchanged on the day, but down from their 52-week peak of 103.90, which it notched in September. The Klabin 4 7/8% notes due 2027 are also at 52-week lows, having slid since early April to 94.20, from 96½ previously.

Venezuela and Petroleos de Venezuela SA bonds opened lower by about a point and then recouped some ground and were hovering only about 20 cents to 30 cents lower on the day after the result of Venezuela’s presidential election on Sunday came in as a resounding victory for incumbent president Nicolas Maduro.

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