HONG KONG, Oct 30 (IFR) - Asian credit spreads were stable ahead of the US Federal Reserve's policy meeting as investors focused on a spate of primary issuance.
"There aren't a whole lot of buyers today because of the FOMC meeting, but there was some marginal interest in recently issued bonds," said a Singapore-based trader.
Clifford Capital's debut 5-year bond traded to yield T+45bp, tighter than the T+53bp where it was priced yesterday.
There was some secondary market interest in Indian banks. The 5-year bonds from State Bank of India, ICICI Bank, and Union Bank traded 7-8bp tighter yesterday.
But there was some real money selling interest in Indian and Chinese credits as investors expect new supply.
There was better buying seen in the Indian corporate bond sector, especially for oil and gas companies.
This was also tempered by the expectation of new supply from India, however, as corporates in India could plan visits to the bond market as results season draws to a close.
The Asian iTraxx IG index was around 132bp, the same level as yesterday.
While most other investment-grade bonds were mostly stable, high-yield sovereigns traded weaker on profit taking.
In the primary market, Vingroup is marketing an issue of 4.5-year non-call 3 bonds to yield 12%, while Anton Oilfield is marketing a 5-year non-call 3 bond to yield 8%.