Region drifts in quiet session after hefty April supply surge

viernes 1 de mayo de 2015 13:56 GYT

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...