HONG KONG, Dec 12 (IFR) - Asian credit markets began the
week cautiously, prior to the closely watched US Federal Reserve
meetings on Tuesday and Wednesday. Analysts and investors widely
see the Fed raising US interest rates.
The iTraxx Asia ex-Japan investment-grade index was spotted
about 0.25bp wider at 117.667/119.667, with traders describing
the session as very quiet.
Primary markets were also subdued, as some syndicate desks
said they were finished for the year, with Friday's spike in US
Treasuries making the market more expensive for issuers.
There were, however, expected to be one or two deals done on
Tuesday, both involving Chinese issuers.
One of the biggest movers on the day was the price of oil,
with Brent Crude going up to US$56.71 per barrel, its highest in
18 months, after oil-producing countries agreed to cut output.
Oil-related credits seemed to benefit, if only slightly for
some. Spreads on Petronas' 2025s were 5bp tighter, while CNOOC's
were in 1bp, according to Tradeweb.
Sovereign names were slightly weaker. Yields on Indonesia's
new 2022 and 2027 bonds were both about 4bp wider.
In the high-yield area, recent issuer Country Garden saw
yields on its 2026 bonds widen about 1bp.
The bonds, which failed to price after an aborted attempt in
November, were being bid at 100.517 after issuing at par last
(Reporting by Spencer Anderson; editing by Dharsan Singh)