Issuance from Indonesia’s Solusi; response to Greece news muted; Ukraine sets ceasefire

By Christine Van Dusen

Atlanta, Feb. 12 – Indonesia’s PT Solusi Tanas sold notes on Thursday as Ukraine set a ceasefire and Greece’s prime minister met with European leaders after they failed to agree on a bailout strategy.

“So overall, positive, with Russian credit default swaps spreads over 25 basis points tighter currently,” a London-based trader said. “No major surprises, but I suppose we’ll now see how successfully followed the deal is. One area of concern immediately is the apparent refusal to give the Donbass region autonomy. That may well prevent any sort of long-lasting peace in the region.”

The market’s response to this news, as well as the headlines from Greece, was muted, another trader said.

“Asian credits shrugged off Greece headlines, with high-grade cash closing 1 bp to 3 bps tighter,” he said. “China outperformed the rest of the sectors, with financials 1 bp to 3 bps tighter.”

Also on Thursday, Turkish credit default swaps spreads opened 2 bps tighter and bonds from Central and emerging Europe were slightly wider on the U.S. rates move, a London-based analyst said.

“But euro paper is seeing buyers, despite the Greece news,” he said.

Bonds from the Middle East were mostly flat on Thursday morning, following some pressure on high-yield names on Wednesday, a trader said.

In deal-related news, the Ivory Coast has planned a roadshow. And market sources were whispering about the upcoming issue of euro-denominated notes from Croatia.

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