Mexican sovereign, Cemex come to market; Ukraine fighting tapers; some spreads tighten

By Christine Van Dusen

Atlanta, Feb. 26 – Mexico and Mexico’s Cemex SAB de CV sold notes on Thursday as fighting decreased in Ukraine and spreads tightened for Russia and bonds from Central and emerging Europe.

Fighting in Ukraine has tapered off, with the sovereign’s army reporting no cease-fire violations overnight, a London-based analyst said.

Russian credit default swaps spreads opened 5 basis points tighter on Thursday, supported by better oil prices, a London-based trader said.

Credit default swaps spreads for Turkey were unchanged on Thursday while Turkiye Is Bankasi AS (Isbank) rebounded from recent rumors that the lender was going to be seized by authorities.

Bonds from Central and emerging Europe were strong again on Thursday morning, tightening by about 2 bps, following Wednesday’s risk-on session and outperformance from Croatia ahead of its roadshow, he said.

Looking to the Middle East, spreads were mixed and generally wider on the rates move, the analyst said.

“The new First Gulf Bank saw small underperformance yesterday, but we’ve already seen some buying interest this morning,” he said. “High yield names are finally seeing some support ... with investors attracted to the yields on offer, following underperformance earlier this year.”

From Africa, sovereigns opened tighter on Thursday after being well-bid on Wednesday, a trader said.

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