SINGAPORE, Sept 19 (IFR) - Primary issuance stalled today,
as soft performances of some recent new offerings and two
pivotal central bank meetings made for an uncertain backdrop.
Japan is on holiday today and again on Thursday, while its
central bank meeting on Wednesday will be closely watched for
any announcement either of further easing or signs that it plans
to rethink its strategy to spark inflation.
While markets have priced in only a 20% chance of the US
Federal Reserve lifting rates at this week's FOMC meeting, deal
flow is expected to be subdued until it ends on Wednesday.
There will then be a rush to complete deals before China's
week-long holiday begins on October 3.
"Before October 3, we think there's going to be a lot of
supply, but last week ended looking a bit volatile," said a
Markets were stronger as of the afternoon, with the Asia
ex-Japan iTraxx investment-grade index 3bp tighter at
110bp/111bp, though some individual credits weakened.
BOC Aviation's recent 2021s were at Treasuries plus 140bp,
still 5bp wider than reoffer. Hon Hai's dual-tranche dollar
notes have also widened.
The 5-year was seen at Treasuries plus 113bp and the 10-year
at 145bp, 3bp and 5bp wider, respectively, from the offer prices
Far East Consortium's 2021s edged down to 98.2 today,
yielding 4.16%, having been issued at par to yield 3.75%.
In high yield, Yestar's 2021s have gained steadily since
being issued at par this month and were seen today at 102.5.
State Bank of India's tightly priced Additional Tier 1 notes
have slipped below par to 99.375.
(Reporting by Daniel Stanton; editing by Dharsan Singh)