Russian bonds drop after no-go on ceasefire; Qatar, Abu Dhabi well-bid; Petrobras tightens

By Christine Van Dusen

Atlanta, Sept. 3 – Bonds from Russia dipped on Wednesday after Ukraine’s announcement of a ceasefire was retracted and the conflicting nations were unable to agree on a truce.

The Russian sovereign’s 3½% 2019 notes that priced at 99.195 and traded late last week at 98½ bid, 99 offered moved to 97 bid, 98 offered on Wednesday, a London-based trader said.

Russia’s 4 7/8% notes due 2023 that priced at 98.162 and traded Thursday at 98.35 bid, 99.10 offered were seen at 97.44 bid, 98.44 offered on Wednesday.

And the 3 5/8% notes due in 2020 that priced at 99.533 and traded last week at 101¼ bid, 101¾ offered were spotted Wednesday at par bid, 101 offered.

Meanwhile, flows for bonds from the Middle East were mixed on Wednesday, with most spreads performing well, a London-based trader said.

Kuwait-based Burgan Bank’s 2020s received some attention ahead of expected supply.

Notes from Qatar and Abu Dhabi were well-bid, he said, and paper from Majid Al Futtaim Holding was firm.

Looking to Latin America, Argentina – in the wake of its latest default – held an auction and saw its restructured bonds valued at 39.5 cents on the dollar, a trader said.

But other Latin American names fared better on Wednesday, with Brazil-based Petroleo Brasileiro SA (Petrobras) moving 10 basis points tighter and Brazil’s Vale SA tightening by between 5 bps and 7 bps, a New York-based trader said.

© 2015 Prospect News.
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