REFILE-LatAm credits hold up as sentiment turns
(Refiles to add editor's name)
By Davide Scigliuzzo
NEW YORK, March 25 (IFR) - Latin American credits largely withstood a softening in global market conditions on Wednesday, as US Treasuries and major stock indices sold off following an unexpected drop in US durable goods orders.
"The market is coming off a bit after opening very strong," said a corporate bond trader in New York. "But most credits are still tighter (on the day)."
Notes issued by Brazilian state-run oil company Petrobras were among the outperformers. Its curve gave up some earlier gains but still ended the session some 11bp tighter in spreads terms.
Indeed, most investment-grade names ended about 4bp-10bp tighter on the day after holding firm against a weaker US Treasury market, where yields on the 10-year note rose 5bp to 1.93%.
Brazilian financials were in demand, with Banco do Brasil's 2022s and 2023s both closing roughly a point higher at 92.5-93.0 and 97.5-98.5 respectively.
Among sovereigns, Argentine bonds barely budged despite the country's Finance Minister Axel Kicillof questioning the legality of a US court ruling allowing Citigroup to process two upcoming payments on the country's local law dollar bonds.
Argentina's local-law Discount bonds were ending the session at 97.5-98.5, having lost half a point at most over the last couple of session, according to a second New York-based trader. Continuación...