EM ends week on better tone; Asia mostly unchanged; Brazil ‘attractive’; Uruguay trades

By Christine Van Dusen

Atlanta, Oct. 2 – Emerging markets assets on Friday morning were on fairly firm footing, with a pick-up in spreads, even after the release of weak economic data from the United States.

The tone, overall, was better by Friday, a trader said.

Investment grade bonds from Asia were unchanged to 3 basis points tighter on Friday, another trader said.

“However, the market lost momentum, post-London open, and we closed the day broadly unchanged,” another trader said.

Korea bonds were unchanged while notes from India were “generally firm, with buyers in 10-year corporates and short-dated financial paper,” he said.

Sovereign bonds from Turkey traded well on Friday, with the curve gaining some steepness before trading very flat, another trader said.

Looking to Latin America, bonds were mostly illiquid at the end of the volatile week, a New York-based trader said.

In other trading from Latin America, Uruguay’s 2024 bond continued to be a standout, a trader said.

“The best performer on this curve,” he said. “This could be attributed to the ample liquidity found in this bond versus other Uruguay maturities.”

Meanwhile, Peru saw its curve steepen, with the 2025s and 2027s outperforming, another trader said.

From Brazil, the sovereign’s 2021 bonds were “attractive,” the trader said.

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