ASIA CREDIT CLOSE: New issue performance supports secondary strength
HONG KONG, Sept 10 (IFR) - Asian credit spreads tightened today as risk sentiment remained upbeat on the back of strong economic data from China and good secondary performance of deals priced yesterday.
The iTraxx IG index pulled in to 134bp/136bp from yesterday's closing of 139bp/141bp.
ZhengTong Auto's June 2018s traded 15bp tighter than yesterday's pricing of T+285bp. PTTEP's 2018s traded as tight as T+191bp after pricing at T+200bp yesterday, but some profit taking set in to bring it back to T+198bp.
Still, the strong performance of these deals helped compress spreads overall and provided a positive tailwind for more issuers to enter the market. Traders also reported some selective profit-taking in other sectors as investors made room for new deals.
"The market is in a better mood and everyone is trying to pick up paper, but some profit taking in some Chinese bonds, largely because the new ZhengTong issue looks fairly cheap relative to some other credits," said a Singapore-based trader.
That strong performance also prompted more issuers to come to the market today. Indonesia is marketing a 5.5 year sukuk at 6.375% initial price guidance, while KDB is selling 5.5 year notes at T+155bp price talk.
There was, however, some selling pressure on bonds of Baidu and China Overseas Finance, as well as those of Citic Securities as investors saw more value available from the ZhengTong deal.
Traders said some Thai names widened a touch after the new PTTEP bonds trimmed early gains. On the flip-side, Malaysian names traded stronger, with bellwether Maybank 22s tighter at T+240bp.
- Pennsylvania newlyweds "just wanted to murder someone together:" police
- WTO overcomes last minute hitch to reach its first global trade deal
- U.S. freeze shows no sign of weekend melt after deadly storm
- Colorado baker discriminated by denying gay couple wedding cake: judge
- North Korea frees U.S. Korean War veteran after seven weeks |