LatAm credits better bid as market eyes Yellen
By Davide Scigliuzzo
NEW YORK, Feb 24 (IFR) - Latin American credits generally saw a strong bid on Tuesday morning amid solid corporate earnings results and hopes of a dovish tone when Fed chief Janet Yellen speaks to Congress.
But while tone was positive, market players said not many bonds were changing hands in early trading ahead of Yellen's 10:00am appearance on Capitol Hill.
"There are definitely firmer bids out there, but there isn't a lot of price action," said a corporate bond trader in New York.
"Of the inquiries we received, I would say 70% are buyers and 30% sellers."
Corporates in Mexico, Peru and Chile were seen as particularly in demand, while even battered Brazilian credits such as state-run oil company Petrobras enjoyed a bit of a bounce after Monday's slide.
The company's 2024s, for example, opened 7bp tighter at a spread of 538bp-533bp, benefiting from general risk-on sentiment and some buying appetite after recent weakness, said a second trader in New York.
A rebound in oil prices, with Brent recovering after Monday's slide to climb back above the US$60 a barrel mark, provided some support for Venezuelan bonds.
The sovereign's 2022s were opening a quarter of a point higher at 46-47, according to a broker. Continuación...