HONG KONG, Sept 20 (IFR) - Asian credits stayed quiet today
ahead of crucial central bank meetings in the US and Japan.
The US Federal Reserve meets today and tomorrow with a
statement on monetary policy to come on the second day. The Bank
of Japan holds a meeting tomorrow.
The Fed is not expected to raise interest rates, but
sentiment among traders is that the BOJ will lower rates even
"It feels totally dead today," said a Singapore-based
investment-grade bonds trader. "The market seems to be using
these central bank meetings as an excuse not to do anything.
They don't want to jump the gun. Plus, you've had a lot of
regional holidays, too."
The iTraxx Asia IG ex-Japan was spotted mostly unchanged,
with traders saying they did not see any major movers on the
Equity markets were also bid lightly, with most major
regional indices down around 0.1%
However, there was a pick-up in primary markets after a
quiet Monday, with a range of new issues being marketed in a
number of different regional currencies.
Trading in sovereign bonds was among the more active, but
still saw little change. Yields on Philippines 2041 bonds were
1bp wider as were its 2026s. Indonesia's euro-denominated 2028s
were 1bp tighter.
Recent issuers also saw tepid trading. Spreads on Foxconn's
recent 5-year US dollar issue tightened 1bp, while the 10-year
tranche was unchanged. Industrial Bank 2019s saw spreads tighten
almost 2bp, as the 2021s were half a basis point narrower.
In the high-yield segment, Powerlong's US dollar 5NC3s
tightened 3bp, while State Bank of India's recent AT1 were up
slightly, being bid at 99.450, according to Tradeweb.
(Reporting by Spencer Anderson; editing by Dharsan Singh)