Morning Commentary: Vedanta slips; EM sovereigns weaker after jobs data; Iraq retraces some gains

By Rebecca Melvin

New York, Aug. 4 –Vedanta Resources plc’s newly priced notes slipped below par on Friday after the metals and mining company priced $1 billion of the 2024 notes at par to yield 6 1/8%. That was the midpoint of guidance, which had been revised down from 6 3/8% initially talked.

The new Vedanta notes were down to around 99.60 bid, 99.90 offered, a London-based market source said.

The deal broke on a day when emerging markets sovereigns saw a little bit of selling across the board after a stronger-than-expected U.S. nonfarm payrolls report for July sent U.S. Treasuries lower.

“Things were marked down with the Treasuries move,” a London-based sellsider said.

The Republic of Iraq’s new 6¾% notes, which priced on Wednesday, had pushed up again in trade to as high as 100.6 on Friday, but then slipped back to close at 100.35 bid, 100.5 offered, according to market sources.

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