SINGAPORE, Nov 14 (IFR) - Asian credit markets were marked by thin trading volumes with risk still trading on the weak side, pushing players to the sidelines as they waited for clearer signals as to where the markets were heading.
"People are trying to take profits in the long-dated space," said one trader, "but spreads are wide. No one wants to short and no one wants to make a commitment."
The inaction left the credit spreads generally flat with the Asia IG index unchanged at 125.5bp although a couple of trades changed hands at 123bp and 126bp earlier in the day.
The skew towards IG names was evident in the deals that were announced today with high-grade issuers emerging to take advantage of the flight to safety.
They included the Republic of Indonesia finally launched its global sukuk with a 10-year deal at a guidance of 3.5% area, but had little impact on its outstanding bonds. The Islamic notes 4.00% due November 2018 were seen at 2.95% yield while the conventional 2022s were quoted at 2.90%.
As a benchmark IG credit, Hutchison's new 2022s were gaining more traction, seen at 171bp/170bp today, having pulled in from yesterday's 175bp.
China high-yield deals were not faring that well with Soho China trending lower with its 2017s and 2022s quoted at 95 versus the issue price at par, while newly minted Gemdale widened to 98.75 from a par reoffer.