Peru sells notes; investors await Fed comments; profit-taking abounds; Codelco moves wider

By Christine Van Dusen

Atlanta, Oct. 27 – Peru sold new notes on a Tuesday that saw investors consolidating their positions on the first of the two-day Federal Open Market Committee Meeting.

“I can’t see any major surprises, given the data has only weakened since the last meeting,” a trader said.

Bonds from Turkey stayed firm on Tuesday, with rates heading off recent highs and five-year credit default swaps spreads getting closer to Friday’s tights, another trader said.

Asian bonds started the day unchanged to slightly tighter, then saw some profit-taking, which sent the bonds wider by about 3 basis points, another trader said.

China-based Cnooc Ltd., for one, widened 2 bps to 178 bps bid, 174 bps offered.

Latin America-focused Pacific Exploration and Production Corp. – formerly known as Pacific Rubiales Corp. – was trading lower on Tuesday, approaching the depths seen in September, on lower oil prices and the news that Ecopetrol SA will take over field operations in June of 2016.

Chile-based Codelco saw its bond curve widen by about 10 bps on Tuesday morning after the company cut its five-year investment plan in an effort to deal with oversupply of copper, a trader said.

“Seems to be a decent amount of sellers in the Street,” he said.

Copper prices fell in response to the Codelco news.

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