Argentina
Argentina bond risk fell the most in Latin America over the past three months as quickening economic growth and a $12.9 billion debt restructuring boosted confidence in the country's ability to pay its debt. The cost of protecting Argentine debt against non-payment for five years with credit-default swaps tumbled 0.85 percentage point, in the three months to 794. The decline is the biggest among emerging-market countries after Pakistan, whose default insurance sank 162 basis points to 498.
Greece
Greece has made remarkable progress implementing an austerity program to tackle its debt crisis and is expected to receive the second installment of rescue loans next month, the IMF and EU said this week. They warned, however, that the country still faces significant challenges.
Serbia
Serbia failed to sell the offered amount of six-month Treasury bills today as borrowing costs rose on the same day as mounting inflation concern forced the central bank to raise its benchmark interest rate. The government raised 2.2 billion dinars (Euro 20.8 million) of debt maturing in February 2011, compared with the 4 billion dinars offered.The average yield rose to 11.7 percent from 11.55 percent at a sale on July 22. Serbia is relying on a Euro 2.95 billion bailout loan from the IMF to stay afloat.
Spain
Spain sold the maximum amount of three-year notes at an auction and its borrowing costs fell as concern eased over the country's ability to rein in the euro region's third-largest budget deficit. Spain sold Euro 3.5 billion of three-year debt at an average yield of 2.276 percent, compared with a yield of 3.317 percent at an auction on June 10. That compares with a yield on the secondary market of 2.397 percent on Wednesday.
Demand was 1.9 times the amount sold, below the bid-to-cover of 2.1 times in June.
TNK - BP
Talks between Russia's government and BP Plc's newly appointed Chief Executive Officer Robert Dudley are stoking the best rally in 17 months for bonds of TNK-BP on expectations asset sales will help the Moscow-based affiliate. TNK-BP's $1 billion of 7.5 percent bonds due 2016 rose for a 14th day, the longest rally since March 2009, according to prices on Bloomberg.
The yield fell to as low as 5.536 percent, dropping for the first time below the level before the April 20 oil disaster in the Gulf of Mexico.
Turkey
Turkish bonds fell, sending yields to the highest in more than two weeks, and the lira fell after Reuters reported that Finance Minister Mehmet Simsek said the country may not approve legislation to limit the budget deficit when parliament reconvenes in October. Simsek denied the report. The yield on Turkey's two-year benchmark bonds increased eight basis points to 8.43 percent. The lira weakened to 1.5032 per dollar.
UK Banks
Lloyds Banking Group and Barclays plc registered better than expected profits. LBG registered GBP 1.6 billion profits in the first six months, while Barclays made GBP 2.43 billion in the same period. Yields on LBG decreased by 40 basis points.
Barclays' bonds remained unchanged.
Data compiled by MPM Capital Investments Ltd. www.mpmci.net