SINGAPORE, May 15 (IFR) - Asian credit showed patches of
weakness, despite Treasuries rallying in Friday's US trading
session, as geopolitical concerns weighed.
South Korean sovereign 5-year CDS was 2bp wider today, at
57.6bp, following North Korea's test of a mid-to-long-range
ballistic missile over the weekend.
Korea Resources 2022s initially tightened 3bp in Treasury
spread terms this morning, but ended back where they started, at
Treasuries plus 123bp.
The Asia ex-Japan iTraxx investment grade index was flat at
Bank of East Asia's new Additional Tier 1 securities were
seen at a cash price of 100.5, having priced at par on Thursday.
Woori Bank's AT1s were bid at 100.3, having priced at par last
Noble Group's 2022 bonds recovered somewhat from Friday's
savage sell-off, and rose to a cash price of 53 bid early in the
A new wave of selling took them down to 47 around midday,
before they climbed again to 51.5 as London trading desks
Fellow commodity trader Olam International saw its most
recent issue of 2023 bonds dip a quarter of a point to 99.75,
yielding 4.6%, despite reporting good first-quarter results.
Sri Lanka's 10-year bonds were holding up at a cash price of
101, yielding 6.1%, while Indonesia's 10-year dollar bonds were
bid at a yield of 3.9% after it hired banks for a proposed
Samurai bond issue later this month.
(Reporting by Daniel Stanton; Editing by Vincent Baby)