ASIA CREDIT CLOSE: Sinopec widens, European PB lifts SBI

Last Updated: Fri, Apr 12, 2013 09:10 hrs

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 130bp/120bp.

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.

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