China Minsheng sets talk; EM activity slows; Asian bonds stay firm; Petrobras, Vale tighten

By Christine Van Dusen

Atlanta, May 14 – China Minsheng Banking Corp. Ltd. set talk for an upcoming issue of notes on a slower Thursday for emerging markets assets, many of which have proved to be fairly resilient in the face of volatile U.S. Treasury rates.

“It’s Ascension Day, so we’re expecting reduced activity today,” a London-based trader said. “Despite the daily ‘wag’ of U.S. Treasuries, EM debt has proven bulletproof for now. The technicals are strong. Supply versus demand – limited new supply versus inflows and bond maturities. I’m sure if the market was liquid we would be tracking the ebb and flow of U.S. Treasuries, but it’s not, so it becomes a buy-the-dip scenario.”

Asian high-grade bonds were unchanged to 3 basis points tighter on Thursday morning, another trader said.

“Positive comments out of Greece sent S&P futures higher and led to a small lift-a-thon in the China low-beta space,” he said.

Latin American bonds firmed up somewhat on Thursday, a New York-based trader said, trading “on their own merit” and not at the mercy of U.S. Treasuries.

Bonds from Brazil-based Petroleo Brasileiro SA and Vale SA were tighter while Odebrecht SA saw a good jump, he said.

High-grade names from Mexico were also firmer, he said, and sourcing paper was a challenge.

But Cemex SAB de CV was quiet and range-bound, he said.

© 2015 Prospect News.
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