Oman to tap dollar tranches; investors digest FOMC statement; good liquidity in Gulf region

By Christine Van Dusen

Atlanta, Sept. 21 – Oman announced plans to tap two dollar-denominated issues on a Wednesday that had investors awaiting the latest word from the Federal Open Market Committee, which late in the day lowered its expectations for a rate hike but suggested that it could happen before the end of the year.

“It’s the long awaited day in markets, with two major central bank decisions by the Bank of Japan and the Fed,” a London-based analyst said. “The BOJ left the benchmark rate unchanged at – 0.1%.”

Bonds from Turkey started off about 2 bps to 4 bps tighter overall, a London-based trader said.

Looking to Asia, spreads were mostly unchanged to 1 bp tighter, another trader said.

“Seeing some selling in short-end paper by real-money accounts,” he said. “Oil names mainly unchanged.”

Technology-related bonds were between 1 bp and 2 bps tighter, with some buying, he said.

Bonds from the Middle East saw some good liquidity on Wednesday, a trader said.

“Interesting market today, with rates backing off towards 1.71%, but fairly good demand for duration assets, especially Qatar’s 2046 and DP World’s 2037 into the close,” he said. “They show good spread-tightening on the day.”

Saudi Electricity Co. traded well in the morning, then faded with rates, he said, while Dubai Electricity and Water Authority’s 2020s saw some support at the 118 price level.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.