Romania sells notes; global sentiment improves, then suffers on oil news; Bahrain in focus

By Christine Van Dusen

Atlanta, Feb. 18 – Romania sold notes on a volatile Thursday, which saw global sentiment improve in the morning and then suffer on the news of an increase in stockpiles of crude oil.

“With oil and equities closing lower and United States Treasuries and credit spreads responding accordingly, the market is now a bit on edge again, with ominous 2016 market themes beginning to emerge once again after a stellar rally for much of this week,” a trader said.

Meanwhile, Bahrain was in the news on Thursday after the sovereign was downgraded by Standard & Poor’s to sub-investment grade, just as the sovereign canceled plans for a tap of its 5 7/8% note due in 2021 and its 7% notes due in 2026.

The existing notes were low in trading in the morning, with the 2021s dropping from 100.70 bid, 100.90 offered to 98 and the 2026s dipping from 97.37 bid, 97.68 offered to 95.25.

Elsewhere in the Middle East, trading was “very busy,” the London trader said, with both Saudi Arabia and Oman being downgraded overnight.

Latin American assets had a volatile session, with early morning gains eroding after oil prices reversed on the news of an increase in stockpiles of crude.

High-yield names finished higher on the day, “despite weakness in lower-beta paper,” a New York-based trader said.

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