Brazil outperforms in quiet quarter-end session
By Davide Scigliuzzo
NEW YORK, March 30 (IFR) - Brazil outperformed in an otherwise quiet trading session for Latin American credits Monday, suggesting most accounts have already squared their positions ahead of the upcoming holiday.
"After the end of the month, market activity is going to be pretty much shut for Latin America," said a corporate bond trader in New York. "It already feels like real trading is behind us."
Brazil's bonds were ending the day some 5bp tighter, a better performance than Mexico, Peru and Colombia, which closed unchanged to 1bp tighter, according to the trader.
In the corporate space, notes issued by Brazilian state-run oil company Petrobras did well, with most buying concentrated in the early part of the day.
The company's 2024s and 2044s ended the day at spreads of 527bp-517bp and 532bp-522bp respectively, or between 5bp and 6bp tighter.
News that Petrobras could release audited results as soon as mid-April after it agreed with regulators about the methodology for calculating corruption losses, helped the bonds.
But Brasil Foods and steelmaker Gerdau saw their bonds slide after reports that they are among Brazilian firms being investigated for tax fraud, said the trader.
Brasil Foods's 2024s dropped 1.5 points to close at 96-97, while Gerdau's 2024s were down 1 point to 96.5-97.5. Continuación...