HONG KONG, Oct 11 (IFR) - Asian credits were bid mostly
tighter on Tuesday, as the market reacted to an overnight rally
in the US and a slowdown in the supply of new bonds.
With China on holiday for all of last week, there were few
fresh bonds, giving traders a chance to digest the large amount
of issues that had hit the market in the preceding 2-3 weeks.
The iTraxx Asia ex-Japan investment-grade index was 1bp-2bp
"The morning session was really busy, especially in
longer-dated stuff," said a Singapore-based IG bonds trader.
"There's been less supply lately, so activity is picking up, but
there still wasn't much movement in either direction."
Investors will be looking closely at Wednesday's release of
minutes from September's Federal Reserve meetings for any clues
on the future direction of US interest rates.
Recent issues benefited from the lower supply with many
names edging slightly tighter. Spreads on Indian crop-protection
firm UPL's new 2021s were 2bp tighter, while Fantasia's 5-year
non-call three bonds were 1bp tighter.
One of the biggest movers on the day was Indian telecom
Bharti Airtel's US dollar 2025s, which saw yields widen around
Asian equity markets moved slightly higher, with the
exception of the Hang Seng Index, which fell 1.5% as Hong Kong
returned from Monday's Chung Yeung Festival bank holiday.
Brent Crude, which approached a one-year high on Monday,
fell 0.36% to US$52.95.
The British pound continued its slide against the US dollar
and was being bid 0.55% lower at US$1.2291.
(Reporting by Spencer Anderson; editing by Dharsan Singh)