Asian bonds soften; Pakistan rises in trading; Brazil quieter; Marfrig sale gets go-ahead

By Christine Van Dusen

Atlanta, Sept. 25 – Positive economic data overnight and remarks from the Federal Reserve chair did little to lift the credit markets on Friday, with bonds from India moving as much as 7 basis points wider and volumes for Turkey staying fairly low amid more selling.

In response, Asian bonds finished the challenging week on softer footing, with investment-grade bonds closing Friday’s early session between 2 bps and 5 bps wider.

“The tone felt much better, post-London open, as European equities and [emerging markets] rallied, but Asian credits failed to catch up,” a London-based trader said.

In trading on Friday, the new issue of notes from Pakistan – $500 million 8¼% notes due 2025 that priced Thursday at par – moved up in the secondary market, a trader said.

The notes were seen trading between 101 3/8 and 102 3/8, he said.

The notes had been talked at a yield in the low-8% area.

From Latin America, sovereign spreads moved wider on Friday amid significant selling, a New York-based trader said.

Bonds from Brazil were “markedly quieter” on Friday after the previous session’s rally, another trader said.

Also on Friday, regulators approved Brazil-based Marfrig Group’s sale of chicken company Moy Park to JBS, a move that is “positive news” for Marfrig, according to a report from Schildershoven Finance BV.

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