ASIA CREDIT CLOSE: Credits quiet, but new supply picking up

Last Updated: Tue, Jan 10, 2017 14:20 hrs

HONG KONG, Jan 10 (IFR) - Asian credit markets lacked much impetus on Tuesday, with investment-grade and high-yield names mostly flat during the session.

While secondary markets were quiet, there was a further pick-up in primary markets with more mandates announced and four US dollar issues expected to be priced tonight.

Traders attributed the lull in secondary activity to the growing pipeline, as buyers prepared to put cash into new issues.

The iTraxx Asia ex-Japan IG was about a quarter of a point wider at 114.750/117.00.

The largest constituent movements involved some Chinese names that were about 3bp wider.

High-yield names also lacked much direction. Recent issuer China Aoyuan Property's 2020 bonds were about half a basis point wider, while Shandong Ruyi's 2019s, which it tapped late last month, were mostly unchanged.

Sovereign names tended to see more movement on the day. Long-dated Philippines bonds, such as the 2040s and 2041s, were bid over half a point higher. Indonesia 2047s were also about half a point higher.

Equity markets were mixed with the Hang Seng up 0.6%, but the Shanghai exchange was down 0.4%.

Commodity prices were more settled after falling almost 4% on Monday. They were up in the earlier part of the session, but were down slightly as of the end of the day.

(Reporting by Spencer Anderson; editing by Dharsan Singh)

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