SINGAPORE, April 29 (IFR) - There was a constructive tone in
Asian credit at today's session in the form of light volume due
to public holidays in China and Japan. Participants shrugged off
the weaker-than-expected US GDP data for the first quarter,
which came in at 0.5%, below consensus for a 2.5% gain.
An area of activity was the 5-year point on the India FIG
curve, where spreads looked optically cheap - thanks to the
proposed pricing on a 5-year tranche for India's ONGC.
At Treasuries plus 200bp, the mid 200bp levels seen on India
bank names began to look appealing. So, the State Bank of India
due 2018s came in 4bp to plus 251bp on this view and the ICICI
due 2018s pulled in 7bp to plus 273bp.
A regional trader noted that a lot of cash that had been
sitting on the sidelines on the view that credit spreads were
overstretched was being deployed in the market on the back of
the Japanese QE programme, even though the anticipated wall of
Japanese money expected to flee yen assets and put to work in
Asian debt had yet to materialize. In a measure of the solid
tone, the iTraxx IG index is closing 1bp tighter at 110bp mid.
Meanwhile, recent new issuance has performed solidly. The
Beijing Water Enterprises 2018s, which priced on Friday at par,
were last at 100.95 mid, while the Parkson Retail 2018s were at
100.10 mid. The best performer on the day was the Xinyuan 2018s,
which rallied up to 102.7 mid, having been reoffered last week