IBRD, 361 Degrees issue notes; Russian bonds flatten; Middle Eastern bonds see sellers

By Christine Van Dusen

Atlanta, Sept. 4 – China’s 361 Degrees International Ltd. and the World Bank’s International Bank for Reconstruction and Development sold notes on a Thursday that saw bonds from Russia open flat on the news that the sovereign and Ukraine were both willing to consider a ceasefire.

“News of a potential ceasefire spurred a 2 point rally in the sovereign, yet considerable caution remained,” said Svitlana Rusakova of Dragon Capital. “Quasi-sovereigns and corporates recorded similar gains in very limited volume.”

Muting enthusiasm was the expectation that further sanctions will be levied against Russia.

Also impacting market sentiment: The European Central Bank surprised investors by cutting already-low interest rates.

Middle Eastern bonds saw more sellers than buyers on Thursday, with long-dated bonds getting the most attention, a London-based trader said.

Good volume went through on Dubai’s 2022s and 2023s, he said, and buyers showed interest in Saudi Electricity Co.’s 2043s and 2044s as well as Morocco’s 2042s and bonds from Qatar.

From Latin America, Petroleo Brasileiro SA (Petrobras) saw better selling on Thursday, a New York-based trader said, with solid volume and spreads moving slightly wider.

But most names took “a bit of a breather,” he said, amid limited liquidity.

Mexico’s Cemex SAB de CV’s two-tranche issue of dollar- and euro-denominated notes traded up between 25 cents and 75 cents in the gray market, the New York trader said.

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