New Paraguay trades well; market stronger after payrolls; Peru LNG, Unigel, MHP ahead

By Rebecca Melvin

New York, March 9 – The new Republic of Paraguay bonds were trading okay on Friday at about 100.5, supported by weaker U.S. Treasuries, a New York-based buysider said.

On Thursday Paraguay priced $530 million of 5.6% notes due 2048, tight compared to guidance that was set in the high 5% area.

“Paraguay priced a very good deal, which was announced as $500 million but ended at $530 million with zero to five basis points of new issue concession depending on where you spot the curve,” said a New York-based syndicate source away from the deal.

The successful deal shows that appetite remains for emerging markets duration and that fundamentals are strong, the syndicate source said.

Overall, the emerging markets primary remained active this past week, with a decent calendar growing for next week.

U.S. Treasuries weakened on Friday on the back of February’s strong U.S. jobs data. The rate went back up to right around 2.9% for the benchmark 10-year Treasury.

The data is supportive of the narrative that inflation is set to rise and that gradual rate increases to the Federal Reserve’s target Fed funds rate are merited.

Looking ahead to next week, deals on the calendar for Peru LNG SRL and Unigel Participações SA are expected to be able to be completed.

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