Last Updated: Mon, Apr 29, 2013 09:20 hrs

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 at par.

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