Morning Commentary: Turk Telekom deal ‘going very well’; spreads improve; EuroChem eyed

By Rebecca Melvin

New York, Feb. 21 – Emerging markets debt market players were eyeing pricing of the Turk Telekomunikasyon AS dollar-denominated bonds that were being talked at a 7 1/8% to 7¼% yield on Thursday for a six-year note of $500 million size.

The deal, which was expected to price later in the session, was “probably about 25 basis points tighter since announcement. It’s going very well,” a London-based market source said.

Meanwhile spreads overall were improved against a drop in U.S. Treasuries, a second source said. The price on the benchmark 10-year Treasury was last down 0.41%, lifting the yield to 2.693%.

Oman was a big mover on Thursday after the sovereign said it would not borrow as much as previously expected. Its sovereign curve tightened by 15 bps to 20 bps on the day, the source said.

Meanwhile, in the CIS region, EuroChem Group AG announced that it plans to price a dollar-denominated five-year note, and the fertilizer producer will be starting meetings with fixed-income investors next week, with stops in Moscow, Zurich and London.

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