Cordoba sells notes; EM mixed on U.S. data; Ecopetrol climbs; Nigeria, Los Grobo advance deals

By Christine Van Dusen

Atlanta, June 3 – The Province of Cordoba sold notes on Friday as weak employment data from the United States led to mixed performance from emerging markets assets.

The U.S. economy in May added fewer jobs than it had in more than five years, led by drops in construction and manufacturing employment. That, market sources say, could make it more difficult for the Federal Reserve to bump up rates.

“Varying degrees of performance once again, as weak [data] weakens the Fed’s case for a rate move, spurring Latin America credit higher,” a New York-based trader said.

Colombia-based Ecopetrol SA, for one, moved up as much as 1½ points while most other names were lifted by about a ½ point, he said.

“Clearly better buying from all account bases,” he said. “The institutional base is coming back in to buy after a mostly subdued May.”

Banks from Colombia moved higher while Mexican high-grade names and banks were “stuck in neutral,” he said.

“Currently valuations are viewed as stretched,” he said.

Mexico-based Cemex SAB de CV realized some small gains across the curve, he said, and Brazil’s corporates were higher, led by Gerdau SA.

In deal-related news, Nigeria will host a roadshow the week of June 6 for a dollar-denominated issue of notes, a market source said.

Argentina’s Grupo Los Grobo is looking to issue dollar-denominated notes, a market source said.

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