Post by Admin on Aug 6, 2013 17:07:55 GMT 8
06-08-2013 16:48:30
ASIA CLOSE: Credits flat in sluggish markets
SINGAPORE, August 6 (IFR) - The holiday mood is seeping into the region's credit
markets as traders reported extremely thin trade today with most Asian bonds
broadly unchanged. The traditional summer holidays are beginning to take hold
and, in South-East Asia, the week is two days shorter with days off Thursday and
Friday, making market players reluctant to take up major positions.
The Asia IG index was flat with quotes at 142bp, although the Australian index
tightened about 2bp after the Reserve Bank of Australia cut its benchmark rate
to 2.5%.
Korean bonds, particularly short-dated ones, found good bids. The most recently
priced 2018s from Korea Gas were about 1bp tighter at 142bp-138bp. The appetite
for Korean paper encouraged SK Innovation to emerge this morning with a 5-year
deal indicated at 255bp over US Treasuries. It looked wide relative to other
Korean names, such as LG Corp's bonds, which were at 145bp.
The Indian credit curve was fairly stable today, with some buying seen in
shorter-dated notes. Some paper, particularly in the 3-year segment, was heard
being exchanged. However, one Singapore-based trader said: "It is still not that
active since no one wants to go short or long, which makes it pretty boring."
IOC's 2023s were around 345bp mid-spread, but the bid-offer gap remained very
wide, reflecting the lack of interest in Indian 10-year paper.
In the China segment, Poly Real Estate's 2018s were indicated at 345bp/335bp,
slightly tighter from yesterday, but still wide from the reoffer spread of
335bp, while buyers of Baidu's 2018s could not find any good offers since the
notes went mainly to the US markets.
Longyuan's 2016s were barely traded today, after pricing at 285bp last night, on
account of the small size, which meant that investors were holding on tightly to
the paper. Still, they were being quoted some 10bp tighter in spread, where
quotes could be found.
??
kityin.boey@thomsonreuters.com
ASIA CLOSE: Credits flat in sluggish markets
SINGAPORE, August 6 (IFR) - The holiday mood is seeping into the region's credit
markets as traders reported extremely thin trade today with most Asian bonds
broadly unchanged. The traditional summer holidays are beginning to take hold
and, in South-East Asia, the week is two days shorter with days off Thursday and
Friday, making market players reluctant to take up major positions.
The Asia IG index was flat with quotes at 142bp, although the Australian index
tightened about 2bp after the Reserve Bank of Australia cut its benchmark rate
to 2.5%.
Korean bonds, particularly short-dated ones, found good bids. The most recently
priced 2018s from Korea Gas were about 1bp tighter at 142bp-138bp. The appetite
for Korean paper encouraged SK Innovation to emerge this morning with a 5-year
deal indicated at 255bp over US Treasuries. It looked wide relative to other
Korean names, such as LG Corp's bonds, which were at 145bp.
The Indian credit curve was fairly stable today, with some buying seen in
shorter-dated notes. Some paper, particularly in the 3-year segment, was heard
being exchanged. However, one Singapore-based trader said: "It is still not that
active since no one wants to go short or long, which makes it pretty boring."
IOC's 2023s were around 345bp mid-spread, but the bid-offer gap remained very
wide, reflecting the lack of interest in Indian 10-year paper.
In the China segment, Poly Real Estate's 2018s were indicated at 345bp/335bp,
slightly tighter from yesterday, but still wide from the reoffer spread of
335bp, while buyers of Baidu's 2018s could not find any good offers since the
notes went mainly to the US markets.
Longyuan's 2016s were barely traded today, after pricing at 285bp last night, on
account of the small size, which meant that investors were holding on tightly to
the paper. Still, they were being quoted some 10bp tighter in spread, where
quotes could be found.
??
kityin.boey@thomsonreuters.com