ASIA CREDIT CLOSE: Credits give up gains, Multipolar dips on debut
HONG KONG, July 19 (IFR) - Asian credits gave up gains in late trading and were set to end the day unchanged as investors preferred to stay light ahead of the weekend.
However, Multipolar's 5NC3 bonds suffered on debut as retail accounts flipped the bonds and the price fell more than a point to around 98.625 after pricing at par.
The iTraxx IG index was set to close at around 131bp/134bp near yesterday's closing of 132bp/134bp.
"Things started off on a biddish note, around 5bps tighter and then we saw some real money selling and spreads came back to unchanged or touch wider on some names," said a Singapore-based trader.
"The street is better off cutting risk on Friday."
Traders said selling was more pronounced in the Chinese SOE sector, which trader tighter recently.
There were some people selling Chinese SOE bonds, which had been driving up the market earlier in the week. Activity was concentrated in the 10-year bucket.
CNPC 23 and CNOOC23s went from around T+70 yesterday to around T+60bp this morning and are now back to T+72bp/62bp.
In high yield, Shimao's outlook was revised to positive from stable by Moody's. Its 2017s ended 0.38 down on the day at 110/111, while the 18s were unchanged at 112.50/114.
Traders said they saw some buying of Korea and Chinese CDS protection. Korean 5-year CDS was around 78bp/81bp and China 5-year CDS was at 95bp/98bp.
The new Indonesia 23s traded up to 103.50/103.75 after pricing at 99.391 last week.
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