SINGAPORE, April 12 (IFR) - Asian credit trading today was
mostly centred on new issues as Sinopec's outstanding bonds lost
some of their recent momentum after the Chinese quasi-sovereign
announced it was going on the road to market a new issue. The
company's 2042s ended the day about 3bp wider, quoted at
The wide bid-ask spread was due to a lack of bids after the
company announced planned investor meeting with a view to issue
a new bond.
On the flip side, the new 2018 bonds of the State Bank of
India found back their footing and ended the day at 254bp/253bp,
about 2bp tighter than the reoffer spread of 255bp.
The deal had been bid as wide as 259bp this morning, but
private-banking accounts from Europe were buying in the
afternoon, repricing the lender's new bonds tighter.
Still, the market overall ended unchanged to slightly wider
with the Asia iTraxx IG Series 19 index quoted at 115bp/114bp,
2bp wider than yesterday.
That, however, was mostly a reflection of gains in US
Treasuries during the Asian session, with some blaming it on the
volatility in the JGB markets, which was pushing some investors
to cycle out of Japanese debt and into US government bonds.
In spite of the wider CDS, though, bonds were generally
better bid and high-yield continued its rally, ending the week
close to its year-to-date highs.
Some of the Single B Chinese property bellwethers gained as
much as USD4 in price terms over the course of the week.
Greentown 2018s, for instance, were closing today at 108.75,
almost USD5 higher for the week. CIFI Holding's bonds, priced
earlier this week at par, were last quoted at 103.50-104.00.
Indonesia also made further gains and its 2043s were last
quoted at 103.125 for a rise of USD5 since the bond priced on
Monday at 98.012, while the 2023s were last quoted at
101.50/102.00, having priced at 98.953.