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
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.