CAF sells notes ahead of FOMC meeting; Turkey curves steepen; mixed trading from Asia

By Christine Van Dusen

Atlanta, Sept. 20 – Venezuela’s Corporacion Andina de Fomento (CAF) sold notes on a Tuesday that saw mixed trading of Asian assets and mostly unchanged spreads from Turkey ahead of the Federal Open Market Committee's latest announcement.

“The Fed will begin its two-day FOMC policy meeting today and the Bank of Japan will announce its outcome of the comprehensive assessment on its monetary policy tools, besides its rate decision, tomorrow in early London hours,” a London-based analyst said. “With that in mind, [emerging markets credit has] understandably traded on a more cautious note over the last week.”

Spreads for bonds from Turkey were mostly unchanged on Tuesday, a London-based trader said.

“Cash hasn’t been able to keep up with the Treasury bid,” he said. “Curves have steepened up a touch, with buying in 10-year benchmark bonds and the Street offering long-end bonds for choice.”

Banks and corporates were trading tight to the sovereign, he said.

Trading from Asia was mixed on Tuesday, according to a report from Schildershoven Finance BV. Ten-year bonds from Indonesia were up 19 basis points while Malaysia’s were down 3 bps.

China’s 2027s, meanwhile, were down 11 bps, the report said.

In other news, India’s Delhi International Airport Pvt Ltd. will set out on Wednesday for a roadshow to market an issue of dollar- and rupee-denominated notes, a syndicate source said.

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