Morning Commentary: EM debt starts new week on a quiet note; new Nafta agreement eyed

By Rebecca Melvin

New York, Oct. 1 – Emerging-markets debt was quiet to slightly stronger to begin a new week and the fourth quarter on Monday, with several planned new issues wrapping up roadshows for pricing possibly on Tuesday.

It’s a “lackluster Monday really,” a London-based trader said.

Among deals on the calendar scheduled to conclude fixed-income investor meetings on Monday were Albania, with a U.S. dollar-denominated benchmark offering of notes with an intermediate tenor, Saudi Basic Industries Corp., or Sabic, which was planning dollar five- and/or 10-year notes, and Gulf International Bank BSC, which was marketing five-year dollar notes.

There was news for market players to digest on Monday, including that Canada has joined Mexico and the United States for a revamped North American Free Trade Agreement. The new agreement, called the United States-Mexico-Canada Agreement, or USMCA, gives U.S. farmers greater access to the Canadian dairy market but keeps a Nafta dispute-resolution process and protects Canada from any U.S. tariffs imposed on cars, trucks and auto parts imported into the United States.

Also on Monday, Indonesia was in focus after the Asian country suffered a 7.5 magnitude earthquake and tsunami on Friday that has affected up to 1.6 million people, according to the Associated Press.

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