Morning Commentary: EM euro yields decline; Malaysia Airports sets tenor; Indonesia deal ahead

By Christine Van Dusen

Atlanta, Aug. 25 – Yields for euro-denominated bonds were lower on Monday in response to European Central Bank president Mario Draghi’s call for fiscal reforms and suggestion that the organization is prepared to take steps to buoy the economy.

“The comments were interpreted by some market participants as a door opener for further quantitative easing measures,” according to a report from Erste Group Research.

In deal-related news, Malaysia Airports Holdings Bhd.’s upcoming issue of ringgit-denominated Islamic bonds will carry a perpetual maturity, a market source said.

CIMB, HSBC and Maybank are the bookrunners for the Regulation S deal.

The Subang, Malaysia-based investment holding company operates in five segments through its 25 subsidiaries, including duty-free and non-dutiable goods, airport services and hotel management.

Also on Monday, market sources where whispering about Indonesia’s upcoming issue of Islamic bonds via CIMB, Emirates NBD, HSBC and Standard Chartered Bank.

The issue could come to the market with a yield of 3.8% to 4˝%, a market source said.

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