LATAM WRAP-LatAm credits wider on commodity concerns
By Paul Kilby
NEW YORK, Aug 19 (IFR) - LatAm credits took another beating on Wednesday, as a rally in US Treasuries after the Fed's minutes failed to offset concerns about growth in China as well as sputtering commodity prices.
Ten-year US Treasury yields fell back to around 2.12% after the minutes suggested the FOMC wanted more data on US growth and inflation before an "approaching" hike in rates.
The possibility of a delay in monetary tightening in the US, however, brought little comfort to investors looking at EM assets in Latin America.
"(LatAm high-grade credits) are trying to stage a bit of a bounce, but they are still weaker," one US-based trader told IFR.
More volatility in Chinese stocks and another step down in crude prices served to heighten worries about the commodity exporting region.
Bonds issued by Brazilian state-owned oil company Petrobras were some 20bp wider on Wednesday, with the 2024s quoted at 585bp-580bp.
Meanwhile the bonds of Pacific Exploration and Production - formerly known as Pacific Rubiales - continue to sink, with its 2025s now trading in the mid to low 50s, another trader said.
Those securities were being spotted in the mid 60s in late June. Continued...