SYDNEY, Jan 13 (IFR) - Asian risk assets may have a slight
negative bias, following an overnight slippage on Wall Street
where investors and traders positioned themselves ahead of the
fourth-quarter earnings season that kicks off later today.
Ongoing disappointment over a lack of clarity on Donald
Trump's economic and fiscal policies, plus an absence of company
stock buybacks before earnings announcements contributed to
respective daily declines of 0.21%, 0.32% and 0.29% in the S&P
500, Dow Jones and Nasdaq Composite.
Treasuries were well bid again on Thursday, a day after the
Investment Company Institute revealed the biggest cashflow to
bond funds from stock funds since the election. US two-year and
10-year yields both eased 1bp to 1.18% and 2.36%, respectively,
while 30-year yields firmed 1bp to 2.96%.
European bourses were weighed down by a catch-up sell-off in
healthcare stocks on Trump's criticism of pharmaceutical
pricing, as well as a slide in auto shares after the
Environmental Protection Agency accused Fiat Chrysler of excess
With Fiat Chrysler's share price plunging over 16%, it was
no surprise to see the FTSE Milan underperforming with a 1.69%
slide. The DAX, CAC 40 and Spanish IBEX declined 1.07%, 0.51%
and 0.01%, respectively, while the FTSE 100 managed to eke out a
0.03% increase for its record 13th successive positive session.
Gilt and Spanish 10-year yields eased 4bp and 2bp to 1.30%
and 1.43%, as 10-year Bund and BTP yields rose 6bp and 4bp to
0.31% and 1.90%, respectively.
US investment-grade and high-yield CDS spreads finished
unchanged and 2bp wider at 66.5bp and 354bp after Europe's main
and crossover CDS spreads had climbed 1bp and 4bp to 70.5bp and
The Republic of Korea (Aa2/AA/AA-) is marketing
SEC-registered 10-year US dollar bonds at Treasuries plus
70bp-75bp with joint bookrunners Bank of America Merrill Lynch,
Citigroup, Goldman Sachs, HSBC, JP Morgan, KDB and Samsung
Changchun Urban Development and Investment Holdings, rated
Baa1 (Moody's), has set guidance at Treasuries plus 240bp for
three-year Reg S US dollar bonds. CMBC International is sole
global coordinator and joint bookrunner with ANZ. China
Everbright Securities HK, China Merchants Securities HK and ICBC
Singapore are joint lead managers.
Unrated S E A Holdings has tightened price guidance on its
offering of three-year Reg S US dollar bonds to 4.5%-4.625%.
Credit Suisse and HSBC are joint global coordinators and joint
bookrunners with DBS, MUFG and Standard Chartered.
National Australia Bank (Aa2/AA-/AA-) has updated guidance
for seven-year Samurai bonds to 12bp over yen offer-side swaps,
ahead of pricing today, alongside a 10-year tranche being
marketed at 17bp over. Daiwa, Nomura and SMBC Nikko are joint
Guangzhou R&F Properties, rated BB (Fitch), is reopening its
US$265m 5.75% Reg S January 12 2022s around final yield guidance
of 5.95%. AMTD, Citigroup, Morgan Stanley and UBS have joined
original leads Goldman Sachs, China Merchants Securities (HK),
Deutsche Bank and Haitong International as joint bookrunners for
Auckland Council, rated Aa2/AA (Moody's/S&P), issued a 500m
1.0% 10-year Eurobond at mid-swaps plus 33bp, inside 40bp area
German agency Rentenbank (Aaa/AAA/AAA) is expected to tap
its NZ$850m (US$590m) 5.375% April 23 2024 Kauri bond today for
a minimum NZ$50m through sole lead ANZ.
(Reporting by John Weavers)