Region drifts in quiet session after hefty April supply surge
By Paul Kilby
NEW YORK, May 1 (IFR) - May Day celebrations made for a quiet trading session in Latin American credit markets where bond prices largely drifted higher Friday amid light liquidity.
This tops off an April that saw some US$12.50bn in new cross-border bond supply from the region, doubling the US$6.3bn in March and bringing the year to date tally to around US$40bn.
Primary activity this month may start more slowly, however.
Mexican drinks company JB y Compania and Brazil's Votorantim Cimentos are the only names left doing the rounds among investors, though Chile may appear with a driveby this month.
Holidays in several countries on Monday and the release of US payroll data on Friday mean that borrowers have a narrower window for issuance next week.
"Given the move in rates this week, people will want to come back on Tuesday to see how the market is behaving," said a banker.
Friday saw another jump in US Treasury yields as investors continued to cut exposure to safe haven assets in the US and Europe. The yield on the 10-year US Treasury stood at around 2.12% by early afternoon, marking a 21bp move since a week ago.
For now recently minted issues were holding their own, with Bladex's new five-year bond quoted around 170bp after pricing Thursday at plus 190bp. Continuación...