Petronas, Panama, Millicom sell notes; Russia, Turkey, Asia weaken; Braskem tied to scandal

By Christine Van Dusen

Atlanta, March 11 – Malaysia’s Petroliam Nasional Bhd. (Petronas), Panama and emerging markets-focused Millicom International Cellular SA sold notes on Wednesday as Russia’s bonds opened 3 basis points wider.

The move in Russia’ spreads was driven by the move in rates, the continuing decline in oil prices and concern about fighting in Ukraine, a London-based analyst said. Also widening as a result of oil prices were bonds from Kazakhstan.

Turkey weakened as well, as investors remained worried about the strength of the lira, which has been tested by a stronger dollar and the prime minister’s assertion that rates may continue to fall.

In response, Turkish bonds opened about 2 bps wider on Wednesday.

Bonds from Central and emerging Europe were also wider on Wednesday but still managed to outperform others in the asset class, he said. Euro-denominated paper outperformed dollar-denominated paper.

In trading from Asia, most credits were weaker amid a general risk-off tone, a London-based trader said.

Among sovereigns in Asia, India’s bonds were a couple of basis points wider while Philippines continued to outperform, a trader said.

From Latin America, banks from Colombia took a hit into the close on Wednesday, a New York-based trader said.

Brazil-based Braskem SA suffered the most, however, after a report tied the petrochemical company to the corruption scandal involving Petroleo Brasileiro SA.

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