NEW YORK, April 2 (IFR) - Latin American bond prices were largely drifting as liquidity faded ahead of three-day holiday weekend in the US, with several traders anticipating an early close Thursday.
Investors were largely shrugging off another dip in crude prices on renewed expectations that a nuclear deal with Iran may soon allow the Islamic state to start exporting oil again.
Brent had fallen to around US$54.87, while US crude slipped to US$48.94 a barrel, according to Reuters.
“Oil is selling off, but it is not having any effect (on LatAm credits),” said a New York based trader, who was quoting the 2022s issued by oil rich Venezuela flat at around 44.55.
It is a similar story for Argentine debt prices, which have recovered from an earlier sell-off this week now that Clearstream has reinstated settlement for the vast majority of the country’s securities.
Earlier in the week, the Luxembourg-based clearing house had suspended settlement on securities in the South American country after its local custodian lost its ability to provide services in Argentina.
“In some cases bonds are higher,” said the trader. “The Clearstream news was a non-event,” said the trader.
Local Bonar 2024s were giving back some gains to be quoted at a mid market price of 104.50, down from the 105.00 price of yesterday, but considerably higher than the 102.00 seen earlier in the week.
Meanwhile, sovereign debt was barely budging in response to weakness in the US Treasury market where better-than-expected jobless data have pushed yields higher this morning. That may be because yields on 10-year benchmark still remain comfortably below the 2% mark at 1.87%.
Prices on low beta sovereign were moving lower but only marginally with Brazil 2025s dropping a touch to a bid price of 98.55 and Mexico 2025 down about 20ct to be bid at 102.55.
In the corporate space, bonds issued by America Movil were hardly impacted by news that the Mexican telco plans to transfer about Ps21bn (US$1.39bn) of debt to Telesites, a new local cellphone tower business that it is looking to spin off.
The company’s 2022s were being quoted at a mid-market price of 102.15, or some five cent lower against Wednesday’s closing levels.
PIPELINE Pacific Rubiales, the largest private oil producer in Colombia, has hired Bank of America Merrill Lynch, Citigroup and HSBC to arrange a series of fixed-income investor update meetings in the US, Europe and Latin America between April 8 and May 6.
The meetings will take place in London on April 8 and 9, Switzerland on April 10, New York on April 13 and 14, Boston on April 15, Santiago on April 30, Los Angeles on May 4 and Miami on May 6. (Reporting By Paul Kilby)