Emerging debt mixed as investors sell on strength
Reuters, Wednesday, October 14, 1998 at 16:45
NEW YORK, Oct 14 (Reuters) - Emerging market bond prices
ended mixed Wednesday as several money managers continued to
sell on any sign of strength in the sector, traders said.
Emerging market bond prices rose with U.S. stock but were
met with selling, driving prices just slightly higher or even
lower on the day, traders said.
Brazil's Finance Minister Pedro Malan was scheduled to
explain to a Senate economic panel on Oct. 28 to 29 the
government's plans to tighten fiscal controls.
The government's economic team is working on a three-year
fiscal adjustment plan at tackling a nominal budget deficit of
around 7 percent of gross domestic product (GDP).
Meanwhile, outflow of dollars from Brazil has slowed, but
has not stopped, leaving lingering fears in the market about a
potential devalution of the Brazilian real.
Concerns about Brazil are keeping a lid on emerging market
bonds as investors worry about whether the government will be
able to push through reforms to obtain a contingency loan
facility from the International Monetary Fund.
Late Wednesday, Brazil benchmark "C" bonds were 5/8 higher
at 62-5/8.
Copyright 1998, Reuters News Service |
