Croatia slightly better on debut; Romania on tap; Enel Chile prices; secondary cautious

By Rebecca Melvin

New York, June 7 – The Republic of Croatia’s newly priced 2.7% notes traded up just slightly upon release for secondary market dealings on Thursday after the sovereign priced €750 million of the 10-year notes at 98.302 and a yield spread set on top of its existing curve, market sources said.

The new Croatia notes were seen 98.4 on the bid side after they priced at 98.3, a London-based market source said.

Meanwhile, Romania announced another new deal for the Central and Emerging Europe region. The sovereign, through its Ministry of Finance is pricing on Thursday a dollar-denominated offering of 30-year notes. Pricing was guided to a yield of 5¼%, plus or minus 5 basis points. That pricing was tightened from initial price talk of 5.4%.

In the secondary market, the tone was described as still cautious, with spreads resisting coming back in after widening out last week amid a number of worries that remain in the broader markets. Those red flags include currency concerns and the possibility of continuing strength of the U.S. dollar and the expectation of higher rates. Market players are also still trying to determine how potential tariff battles will play out for trade and what impact those will have on global growth.

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