REFILE-LatAm credits hold up as sentiment turns

miércoles 25 de marzo de 2015 17:04 GYT

(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...