Market reacts to employment data; Albania sells bonds; Tanner sets talk; Future Land up

By Christine Van Dusen

Atlanta, Nov. 6 – Emerging markets assets were stable in trading on Friday morning as investors awaited a pivotal U.S. employment report, which later in the day revealed a greater-than-expected increase in new jobs and a slightly lower unemployment rate for October – news that could increase the likelihood of rate hikes in December.

Short-term Treasury yields spiked on the news, a trader said.

Meanwhile, Albania priced €450 million 5¾% notes due Nov. 12, 2022 at 99.472 to yield mid-swaps plus 559 basis points, according to an announcement from the sovereign.

Deutsche Bank and JPMorgan were the bookrunners for the deal.

The notes traded Friday 100¼, a trader said.

Angola’s new deal – $1.5 billion 9½% notes due 2025 that priced Wednesday at par to yield 9½%, or mid-swaps plus 738 bps – drew a final order book of $7 billion, a market source said.

The notes were talked at a yield in the 10% area.

Deutsche Bank, Goldman Sachs and ICBC International were the bookrunners for the Rule 144A and Regulation S deal.

The notes were spotted in the secondary market near 101½ bid.

In other trading, prices for Peru’s bonds sat close to intraday lows for during the afternoon, a New York-based trader said.

And Chile-based financial services company Tanner Finanzas Corporativas set talk in the 5½% area for a five-year issue of $300 million notes, a market source said.

Other details were not immediately available on Friday.

Future Land trades up

Also on Friday, China-based Future Land Development Holdings Ltd.’s new $250 million of 6¼% notes due 2017 that priced Thursday at 99.079 to yield 6¾% traded at about 99.625, a market source said.

J.P. Morgan Securities plc, BOCI Asia Ltd., Guotai Junan Securities (Hong Kong) Ltd., Hongkong and Shanghai Banking Corp. Ltd. and Merrill Lynch International were the global coordinators and bookrunners for the Regulation S sale.

Proceeds will be used to repay debt and for general corporate purposes.

The final book was $2.48 billion from 179 accounts, with 80% from Asia and 20% from Europe. Fund managers picked up 79%, banks 19% and insurers and others 2%.

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