ASIA CREDIT CLOSE: Sovereigns rise amid more supply

Last Updated: Mon, Apr 07, 2014 09:51 hrs

SINGAPORE, April 7 (IFR) - Asian sovereign bonds generally rose today amid announcements of new supply, traders said.

Sri Lanka marketed an offering of USD500m sovereign bonds at a yield of about 5.5% today, while Pakistan is expected to price a dual-tranche issue of 5-year and 10-year bonds tomorrow.

Indonesia 2044s rose 0.75 to 1 point to 109.5/110 and Philippines 2027s rose 50 cents to 109.375, traders said.

Sri Lanka's 2019s, meanwhile, dropped half a point to 104 to yield 5.04%, leading investors to believe that the coupon on the new bonds will be "significantly tightened" from 5.5%.

Sentiment was slightly weaker among high-yield credits as bonds from Chinese property companies fell slightly.

Shui On Land's 2015s and Evergrande Real Estate Group's 2015s and 2016s drew buying interest, however.

Lippo Karawaci's freshly issued USD 150m bonds traded up on private banking support. The 8-year non-call 4-year bonds, which priced at par on Friday, were quoted at 100.625/101.

The Indonesian developer received USD900m in orders for the bonds from 105 accounts.

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