LatAm head into holiday weekend better bid

jueves 2 de abril de 2015 13:47 GYT

By Davide Scigliuzzo

NEW YORK, April 2 (IFR) - Latin American credits were ending well bid on Thursday in a trading session that saw good two-way flows ahead of the release on Friday of US non-farm payroll numbers for March.

"A few people were selling because of rate fears tomorrow and the Street was short covering, but on balance we saw more buying," said a corporate bond trader in New York.

Most sovereign benchmarks were ending the session little changed in price, but between 4bp and 6bp tighter in spreads as US Treasuries sold off.

Mexico's 2023s, for example, were last quoted at 106.50-106.75, while its 2046s were ending at 103.0-103.5. It was a similar story on the Brazilian sovereign curve, where 2045s were closing pretty much flat at 94.0 to 94.5.

Among corporates, Brazilian state-run oil company Petrobras underperformed, with its spreads widening by between 6bp and 8bp as more accounts sought to take profits after Wednesday's rally.

The company's 2024s were last quoted at 499bp-494bp, while 2044s were spotted at 504bp-499bp, according to a second trader in New York.

In spite of oil prices tumbling in anticipation of a nuclear deal with Iran that could see the country resume oil exports, some oil-related credits such as Pemex continued to find a bid in the market.

The company's notes were ending the day between a quarter and three quarters of a point higher in price, with the 2046s quoted at 102.25-102.75 and the 2026s at 103.75-103.25.   Continuación...