Petrobras leads LatAm credit markets higher

miércoles 25 de marzo de 2015 11:19 GYT

By Paul Kilby

NEW YORK, March 25 (IFR) - Brazil's Petrobras was leading LatAm credit markets higher Wednesday on hopes that the oil company will soon release audited results and avoid a breach of bond covenants.

The region's debt markets were again grinding tighter, continuing a rally sparked by the Federal Reserve's more dovish tone on rate hikes last week.

Higher oil prices and shrinking US Treasury yields were also providing some support. The yield on the 10-year US Treasury fell to 1.88% on weaker economic data.

Debt issued by Colombia, one of the sovereigns more vulnerable to oil price declines, has also watched its recently tapped 5% 2045 soar in the secondary.

Those bonds were quoted around 102.90 Wednesday morning, marking a good three-point jump since those bonds were reopened on Monday.

Meanwhile Petrobras bonds were reversing yesterday's losses on news that the company had reached an agreement with the SEC and local regulators over how to calculate corruption losses.

The company's 2016s and 2024s were being quoted about 10bp tighter at 620bp-610bp and 530bp-520bp, respectively.

The agreement, reported by local newspaper O Estado Sao Paulo, has raised hopes the company will release delayed unaudited results before April 30 deadline set by the SEC.   Continuación...