HONG KONG, April 2 (IFR) - Asian credits were quoted wider Tuesday, as markets reopened after the Easter break, but activity remained muted with another public holiday coming up in Hong Kong on Thursday. The Itraxx IG Index was unchanged, quoted around 122bp versus 120bp/122bp yesterday.
Even then, the recently issued SBLC-backed due 2018s from India's Suzlon attracted buyers and were trading mid market at 419bp or around reoffer, after being bid as wide as 430bp yesterday. Traders said the bounce back today was because investors took time to take a closer look at the credit.
Indian banks were around 5bp wider, while Greater China bonds were unchanged to 3bp wider. "There are a host of issues weighing on India, the top of which is new supply," said a Singapore-based trader.
With the primary market quiet and pipeline building up, there was anxiety over the upcoming supply.
"There are hardly any flows today, but we are expecting more supply in the coming week. S,o there will be a bit of selling to free up space," said another Singapore-based trader.
Korean credit spreads widened 10bp on geopolitical tension in the region. The KDB 22s were the weakest of the lot and were quoted around 138bp over Treasuries, a trader said.
Even amid the gloom, South Korea is circulating a request for proposals as it eyes its first dollar-denominated bond in four years. The sovereign is said to be looking at a relatively small transaction of about USD1bn with no specified tenor yet.
High-yield bonds were around 25 cents weaker in price terms on average and selling pressure remained around property names due to restrictions local governments had put in place.