SINGAPORE, Nov 22 (IFR) - The Asian credit market showed signs of stability today, following several volatile sessions, but some market participants questioned whether it marked a turnaround.
"We are still consolidating," said a credit trader. "It looks like some short positions need to be covered in high-yield sovereign benchmark issues like Indonesia."
Indonesia's 2046s were more than a point higher today, at a cash price of 102.7, and the 2026s two-thirds of a point higher, yielding 4.1%. Philippine 2041s jumped 2 points to 98.1, yielding 3.8%. Sri Lanka's 2021s rose a quarter of a point.
Another trader said the Mongolia 2021s and 2022s had seen more selling lately, following the sovereign's downgrade by Moody's to Ca1 from B3. Fitch also cut the sovereign's rating today, to B- from B.
The Asia ex-Japan iTraxx investment grade index was 3bp tighter, at 110bp/117bp.
In recent financial issues, Bank of China's Green secured 2019s were at Treasuries plus 88bp, around 7bp tighter from pricing, but China Development Bank Hong Kong branch's November 2021s were at Treasuries plus 81bp, having slipped from an issue spread of 70bp.
(Reporting by Daniel Stanton; Editing by Vincent Baby)