February 6, 2017 / 8:36 AM / a year ago

ASIA CREDIT CLOSE: Credit tighter, despite promise of new supply

SINGAPORE, Feb 6 (IFR) - Asia’s primary markets resumed full operations today after the Lunar New Year holidays, but secondary trading was tighter even with the promise of heavy supply.

“There is not much of a supply so far,” said a credit trader. “Markets are still feeling constructive. Sovereigns are still grinding tighter, but, apart from that, people are still waiting for more news and greater clarity on what is coming.”

Indonesia’s bonds of 5 and 10 years were flat after the sovereign reported underwhelming growth figures, but its 2047 bonds jumped nearly a point to a cash price of 104.8 to yield 4.93% on reduced inflation expectations.

GDP grew an annual rate of 4.94% in Q4, down from an annual 5.01% in the preceding quarter.

The Philippines’ recently issued 2042s tightened 6bp to 3.79%, while Korea’s 2027s opened wider before tightening 4bp to US Treasuries plus 50bp, according to Tradeweb.

Bank of China’s July 2021s were seen at Treasuries plus 157bp, as Shanghai Pudong Development Bank marketed the first offshore offering from a Chinese commercial bank year to date.

In high yield, Vedanta Resources’ 2022s edged up a quarter of a point to 100.1, yielding 6.14%, as two other high-yield issuers came to market.

Reporting by Daniel Stanton; editing by Dharsan Singh

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