New deals from BCE, Lenovo, Bharti Airtel; Treasuries take a toll; several roadshows ahead

By Christine Van Dusen

Atlanta, June 3 – China’s Beijing Construction Engineering Group Co. Ltd., China’s Lenovo Group Ltd., India’s Bharti Airtel and Czech Republic-based Ceske drahy AS were among the issuers to print notes on Wednesday amid higher Treasury yields and some wider spreads for Latin American assets.

“Cash prices take their cue from weak global markets and take a leg lower,” a New York-based trader said. “Brazil was firm for a good part of the session but finally followed peers lower as the rates sell-off proved too much.”

Among high-yield names from Latin America, Venezuela finished the session mostly unchanged while Argentina moved higher as oil prices reversed course, he said.

Flows, overall, were light at the start of the session but did increase as the day went on and volatility continued, he said.

Asian bonds closed Wednesday broadly unchanged amid selective real-money demand, despite higher U.S. Treasury yields, a London-based trader said.

“Led to several outperformers in the China and Korea space,” he said. “Rest of the accounts are sidelined, expecting for higher yields to come.”

“India is a touch firmer after the [central bank] cut rates by ¼%,” he said.

In deal-related news, Brazil’s Oi SA, MFB Hungarian Development Bank plc (MFB) and National Bank of Abu Dhabi PJSC planned roadshows for upcoming issuances.

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