Greece makes market defensive; Pacific Rubiales in news; Asian deals suffer; Baidu gets orders

By Christine Van Dusen

Atlanta, June 26 – Greece remained on the market’s mind on Friday morning, following the previous day’s inconclusive talks about the sovereign’s debt bailout, which kept emerging markets assets in a defensive mood.

Asian bonds finished the challenging week with investment-grade spreads unchanged to a couple of basis points wider, a London-based trader said.

“Recent issues that printed this week suffered the most,” he said. “The rest of the sectors were stable, with India closing unchanged and short-end financials in demand. Korea is a couple wider.”

Meanwhile, Latin American bonds saw more sellers than buyers on Friday morning, a New York-based trader said.

And Ukraine saw two-way action for its sovereign bonds, with most of the action focused on the 2017s and 2022s, said Fyodor Bagnenko, a fixed-income trader with Dragon Capital.

Also on Friday, Latin America-focused Pacific Rubiales Energy Corp. received attention again, this time after Mexico’s Alfa SAB de CV could sell its 20% stake in Pacific Rubiales and won’t raise the takeover offer made with Harbour Energy Ltd.

“Pacific Rubiales again is a bit weaker this morning, but I’m really only seeing that weakness in the 2019s and 2021s,” he said. “There are no flows to speak of.”

In other news, the final book for China-based Baidu Inc.’s $1.25 billion two-tranche issue of notes due in five and 10 years was about $7.9 billion, a market source said.

© 2015 Prospect News.
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