SINGAPORE, Dec 1 (IFR) - Trading was winding down on the
first day of December with market players either closing books
or already gone for holidays.
"We are just watching these new deals in the primary market.
Recent deals haven't really done well, books were not entirely
huge and these issuers could probably have gotten larger deal
sizes if they had priced earlier," said one trader.
However, there was one trade that bucked the trend and
outperformed the market.
Shinhan Bank's new Tier 2 notes, priced yesterday at 215bp
over US Treasuries on a US$2.6bn book, tightened sharply today,
hitting a tight of 203bp this morning before settling at around
205bp/204bp in the afternoon.
The new Shougang Corp 2019s did not fare too badly either
after pricing at 215bp over 3-year UST. These were quoted at
What surprised the market was the Republic of Indonesia's
triple-tranche offering, expected to be a large benchmark issue.
Respective price guidance ranges of around 4.00%, 4.75% and
5.70% for notes of 5, 10 and 30 years were some 50bp-60bp above
the sovereign's existing yield curve.
The immediate impact was a 10bp widening in the curve.
"They will look at a huge size since they are prefunding for
next year, but, I think, it is bad timing to emerge at this time
when funds are just flowing out of the EM segment," said another
"But we shall see; the Opec announcement of a cut in output
could give it a boost."
The ROI 5.95% 2046s were seen at yields of 5.036%-5.19%,
while its 4.875% 2021s were at around 3.39%.
(Reporting by Kit Yin Boey; editing by Dharsan Singh)