Bank of Japan sets off rally; Lat-Am names see volumes; South Gas Corridor seeks issuance

By Christine Van Dusen

Atlanta, Jan. 29 – China’s HNA Group Co. Ltd. sold notes on Friday as emerging markets assets rallied in the morning – after the Bank of Japan surprisingly introduced a negative interest rate policy designed to encourage economic recovery and fight deflation – then faded a bit into the close.

“We are seeing global yields tighten on the back of this surprise move,” a strategist said.

Still, oil prices remained top of mind.

In trading, bonds from Asia were on better footing on Friday, driven by the BOJ decision and some recovery in oil prices, according to a report from Schildershoven Finance BV.

Looking to Latin America, most of the volumes focused on names like Petroleo Brasileiro SA (Petrobras), Vale SA and Cemex SAB de CV, a New York-based trader said.

“We’re holding yesterday’s gains, and are a tad firmer, depending on the credit,” he said. “Cemex is clearly taking a breather from a nice run higher throughout the week. The curve is pretty much holding.”

Banks from Colombia were quiet and saw small gains while the Mexican petrochemical complex saw bids rise throughout the week, he said.

In deal-related news, Azerbaijan’s South Gas Corridor is looking to issue up to $2 billion bonds in February, a market source said.

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