ASIA CREDIT CLOSE: Credit spreads tighten on thin volumes
HONG KONG, Sept 3 (IFR) - Asian credit spreads were tighter today on an improvement in global risk sentiment, although trading volumes remained slim as investors sought clarity on supply ahead of the release of non-farm payroll data and the looming Fed meeting.
The iTraxx IG index tightened to 152bp/154bp from 158bp/161bp at the close yesterday. Tightening was seen across the board in both cash and CDS spreads, traders said. However liquidity was thin.
"There are no announcements on which issues are coming on board, there are some here and there, but nothing firm," said a Singapore-based trader.
China's non-manufacturing purchasing managers' index dropped slightly last month to 53.9 from July's 54.1, but it was still above the threshold indicating expansion. This helped boost optimism among credit investors in the region.
Chinese credits were 5bp tighter with CNPC 2023s around 170bp. Thai credits were 10bp wider, while Malaysia and Korea were trading on a firm note.
CDS spreads were about 3bp-5bp tighter, while Indonesia was still 10bp wider following the sell-off yesterday on disappointing trade and inflation data.
Indian credits were unchanged on the day. There was some demand for Bank of India, State Bank of India, Export-import Bank of India and selling interest in Indian Overseas Bank, IDBI. ICICI 20s were quoted unchanged at T+370bp/340bp.
"On the corporate side, guys asking for liquidity on the bid side for credits like NTPC or Indian oil 2021s," the trader said.
Traders said they were closely watching how US markets open after the Labour Day weekend for further cues.
In high yield, Hidili 2015s were up USD3-USD4 in price terms to 73/76, while Mongolia Mining 2017s were up USD2 to 75/77 on short covering.
- Putin dissolves state news agency, tightens grip on Russia media
- North Korea says Kim's powerful uncle dismissed for 'criminal acts'
- Cold, ice grip U.S. as more snow to blanket East
- Thai PM calls snap election, protesters want power now |
- Protesters fell Lenin statue, tell Ukraine's president 'you're next'