Indonesia sells notes; Asian notes widen; Chile performs; Capital Juda, Minmetals trade

By Christine Van Dusen

Atlanta, July 24 – Indonesia sold notes on a Friday that saw limited liquidity and muted activity for emerging markets assets as commodities remained under pressure and the summertime doldrums set in.

In trading, Asian credits ended the week with a softer tone, with investment-grade cash bonds moving 2 basis points to 5 bps wider, a London-based trader said.

The new issues from the region underperformed as pressure on commodities “dampened the mood,” he said.

“Malaysia is 3 bps to 5 bps wider,” he said. “Korea is 1 bp to 2 bps wider. India managed to hold in unchanged.”

Asian property-company bonds were outperformers, due to policy support and strong mid-year financial results, another trader said.

The new issue of notes that Beijing Capital Juda Ltd. priced on Thursday – RMB 1.3 billion of 5¼% guaranteed notes due 2018 that came to the market at par – traded at 100.10 bid, 100.20 offered on Friday, a market source said.

China Minmetals Corp.’s new $1 billion two-tranche issue of notes due July 30, 2020 and 2025 saw some demand, a market source said.

From Latin America, corporate bonds from Chile performed, although Codelco moved wider, a New York-based trader said.

Two-way flows were reported for some Latin America sovereign names, another trader said, but activity was quiet overall.

“Buyers of Mexico’s short end, sellers of the Brazil belly,” he said. “[Petroleos Mexicanos SAB de CV] is still for sale.”

© 2015 Prospect News.
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