NEW YORK, April 2 (IFR) - Latin American credits were ending well bid on Thursday in a trading session that saw good two-way flows ahead of the release on Friday of US non-farm payroll numbers for March.
“A few people were selling because of rate fears tomorrow and the Street was short covering, but on balance we saw more buying,” said a corporate bond trader in New York.
Most sovereign benchmarks were ending the session little changed in price, but between 4bp and 6bp tighter in spreads as US Treasuries sold off.
Mexico’s 2023s, for example, were last quoted at 106.50-106.75, while its 2046s were ending at 103.0-103.5. It was a similar story on the Brazilian sovereign curve, where 2045s were closing pretty much flat at 94.0 to 94.5.
Among corporates, Brazilian state-run oil company Petrobras underperformed, with its spreads widening by between 6bp and 8bp as more accounts sought to take profits after Wednesday’s rally.
The company’s 2024s were last quoted at 499bp-494bp, while 2044s were spotted at 504bp-499bp, according to a second trader in New York.
In spite of oil prices tumbling in anticipation of a nuclear deal with Iran that could see the country resume oil exports, some oil-related credits such as Pemex continued to find a bid in the market.
The company’s notes were ending the day between a quarter and three quarters of a point higher in price, with the 2046s quoted at 102.25-102.75 and the 2026s at 103.75-103.25.
Trading desks in New York will be open for business on Friday morning, but staffing will be reduced to a minimum as most global markets will be shut for Good Friday.
“Banks will have skeleton crews for a couple of hours between 8 and 10 (in the morning),” said the second trader. “Latin America will be shut.”
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 Davide Scigliuzzo; Editing Paul Kilby)