Primary hosts China Great Wall, Oi, Vista, Banco Agricola; EM mixed on Treasury volatility

By Christine Van Dusen

Atlanta, June 11 – China Great Wall Asset Management Corp., Brazil’s Oi SA, Philippines-based Vista Land & Lifescapes Inc. and El Salvador’s Banco Agricola SA printed notes on Thursday as U.S. Treasury rates continued to gyrate, making for a mixed session for emerging markets assets.

“I really can’t begin to describe how fickle, flaky and thin this market is, and how surely it gets worse over the hot sticky summer months,” a London-based trader said.

Asian bonds managed to put in a firm session, with high-grade notes closing unchanged to 2 basis points tighter, another London-based trader said.

“High-beta names initially led the rally but fizzled into the close,” he said.

Oil companies from China rallied a couple of basis points tighter before closing unchanged, and bonds from Korea were quiet but firm, he said.

From the Middle East, National Bank of Abu Dhabi PJSC’s new issue of 5¼% perpetual notes that priced at par to yield mid-swaps plus 335 bps traded “really well” on Thursday, a trader said.

The notes moved as high as 100.40 during the session, he said, which was an “impressive effort.”

Looking to Latin America, longer-duration bonds that have been hard-hit managed to “pop back a bit,” a New York-based trader said, pointing to names like Braskem SA and its 2041s.

“All in all, still very quiet, though,” he said.

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