SINGAPORE, April 11 (IFR) - It was a rather busy market
today as a new deal from State Bank of India caused a spike in
the trading of bonds from the subcontinent with foreign
investors buoying the bonds of emerging sovereigns in the
Indian banks were closing the session 3bp-5bp tighter on the
day amid heavy two-way trading, according to two people.
ICICI 2017s, for instance, had been wrapped at 272bp over US
Treasuries yesterday, but were closing today around 269bp.
The move was also helping some of the Indian corporate bonds
outstanding and most liquid bonds in the space were some 3bp-4bp
Global investors also seemed keen to add exposure to the
lower-rated sovereigns as bonds of Mongolia and Sri Lanka
rallied. Mongolia's 2022s gained almost USD4 in price terms this
week, and were last quoted around 98.00, while Sri Lanka's 2022s
were closing some USD1 stronger on the day at around 107.00.
As sovereigns go, Indonesia's new bonds remained well bid
and the 2023s were closing around 100.75/100.95 mid-market, some
50ct stronger in the day, while the 2043s were last quoted at
101.65/101.85, over USD1 higher in price terms.
While there was a lot of interest in cash bonds, CDS trading
was lackluster and the Asia ex-Japan iTraxx Series 19 index
ended the day only 3bp tighter at 111bp/114bp. The move simply
emulated the move seen in the Treasury curve last night, which
traders described as more of spreadsheet adjustment than actual
The strong demand for Texhong Textiles' new USD200m bond,
which saw books cross USD4.5bn earlier today, had yet to reflect
on the rest of the Chinese industrial space, though.
In fact, one of the few bonds that moved in that sector were
the 2019s of China Fishery Group, which dropped USD2 in price to
a 92.00 bid after the company announced it was willing to pay a
higher price to complete the acquisition of a Peruvian company.