EM CEEMEA CREDIT: MNI EM Credit Market Wrap - CEEMEA
MNI EM Credit Market Wrap - CEEMEA
Measure Level Δ DoD
5yr UST 4.55% +9.8bp
10yr UST 4.75% +6.0bp
5s-10s UST 19.31 -3.8bp
CDX EM 97.0 -0.2bp
CDX EM IG 100.7 -0.1bp
CDX EM HY 93.0 -0.2bp
WTI Crude 75.7 +1.7
Gold 2689 +21.6
USDZAR 19.15 +0.22
USDTRY 35.41 +0.08
EURHUF 413.4 -0.29
EURPLN 4.27 +0.01
EURCZK 25.09 +0.00
** The main stories out of the region **
Global liquid EM sovereign bonds both high grade and high yield were generally down .75 to 1 point post the US labor report surprise. Names like SOAF and KSA in the long end were down more than a point and .75 point in the belly while TURKEY, REPHUN and ARGENT were better behaved down .25 - .75 points. In Latam, recently issued Codelco 10yr bonds were .30 lower than new issue pricing while new Mex 10s/30s were down .65 and .90 respectively and new Chile 12 yr fell .60 from issuance with almost all of those losses from new issue coming from today’s sell off. The new YPF 9 yr traded lower but unchanged from issuance, giving up gains from two days ago. The headline payroll number of +256k vs 160k expected and 4.1% vs 4.2% from the household survey triggered an immediate selloff in 10 year Treasuries of ¾ point and a point in the long end with liquid EM adjusting quickly while off the run high yield corporate bonds re-priced slower. Treasuries recovered somewhat, only down ½ point 10y and longer, but EM bonds have generally not bounced back.
CEE
MVM bid efforts for Romanian's EON Energie are reportedly being blocked. Further uncertainty to be expected. Mixed performance for bonds with '28s wider @ z+182bp and '31s marginally tighter @ z+223bp
CIS
Azeri Socar is expected to issue green bonds denominated in USD on local markets. The use of proceeds is marked for clean energy projects. Meanwhile, Socar Turkiye is reported to be selling its gas distribution units to Aksa.
GCC
Abu Dhabi Ports Co's ratings got affirmed by Fitch @ AA- with stable outlook.
Africa
Transnet Rail Infrastructure Manager has set an application deadline of February 7 for initial slots for private operators.
Top/Bottom Performers recap:
Among top performers on the day, several bonds from the Gulf region charting 12-15bp tighter, including FABUH 28s, DUGB 29s, SHARKSK '28s. EGYPT sovereign charting 16-22bp wider.