Emerging markets focus on ECB, Comey and U.K. vote; Oman tanks; Venezuela credit widens

By Rebecca Melvin

New York, June 8 – No new issues in emerging markets priced out of London on Thursday, but several deals were being marketed including two benchmark tranches promised by the Ivory Coast, sources said.

Market players were focused primarily on potential market-moving developments related to a European Central Bank announcement, testimony by former FBI director James Comey in a U.S. congressional hearing and the general election in the United Kingdom, sources said.

Meanwhile, tensions continued to simmer in the Middle East, with sovereign and bank paper of the Gulf States region moving back and forth in active trade.

Qatar saw its 2026 notes move from 10 basis points wider at the open on Thursday an S&P downgrade overnight to about 10 bps tighter by the close as buyers stepped in.

Oman moved sharply lower on the day. “The curve is 20 bps to 30 bps wider depending on the bond and is “just very well offered,” the trader said of the Oman sovereign paper.

In Latin America, emerging debt was subdued, and trading was in line with developments in the United States. But Venezuela was an exception, a market source said.

Venezuela credit spiked as violent protests against the government of Nicolas Maduro escalated.

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