Morning Commentary: EM debt flattish, quiet; Oman to price dollar sukuk; Ukraine on tap

By Rebecca Melvin

New York, Oct. 22 – Emerging-markets debt started the week on a flattish note with mostly low volumes as investors eyed uncertainty on a number of fronts internationally. But the primary saw additional deals join the calendar for pricing in coming days.

The sovereign yield curve for Sultanate of Oman was a couple of basis points wider, a London-based trader said, after the Gulf Cooperation Council member selected banks and scheduled a fixed-income investor call for a new U.S. dollar-denominated seven-year sukuk for Tuesday.

In addition, the Ukraine announced a new mandate and roadshow for a U.S. dollar-denominated benchmark of 10-year notes, as well as a possible long five-year tranche as part of the offering.

Meanwhile, the Islamic Development Bank was expected to come with a euro-denominated benchmark of five-year Islamic bonds after wrapping up roadshow meetings on Tuesday.

In the broader markets, U.S. Treasuries were in positive territory but trading in a narrow range, with the yield on the 10-year Treasury benchmark right where it’s been in recent days at 3.19%.

Market players were watching the investigation into the murder of Saudi journalist Jamal Khashoggi and potential developments in relations between the Saudi government and the United States and other countries. The election in Brazil was also in view as the final runoff in its presidential election looms this weekend, and China concerns including U.S.-China trade continue to brew.

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