LatAm debt holds steady after US jobs print
By Paul Kilby
NEW YORK, May 8 (IFR) - Latin American debt markets were holding steady Friday following a US jobs number that came in line with expectations and further inflows into emerging market debt funds this week.
Sovereign debt prices were inching higher as yields on the 10-year US Treasury fell to around 2.11% after non-farm payroll data came in at 223,000 new jobs, just shy of expectations.
Brazil 2025s were back at a mid-market price of 99.20, up about 60 cents on the day, according to Thomson Reuters data.
Spreads on bonds issued by Brazilian state-controlled oil company Petrobras were largely flat, with the 2024s quoted at 415bp-410bp.
Crude prices were also climbing, providing some support to oil names throughout the region and including Venezuela, where the 2022s were trading at 56.75-57.75.
With uncertainty over US jobs out of the way, bankers expect a pick-up in primary activity next week as borrowers seek to print before a possible hike in US rates later this year.
Meanwhile technicals remain strong for a region that has seen little supply this year but continues to enjoy inflows into the asset class.
"Demand is strong and investors have money to put to work," said a syndicate official. Continuación...