ASIA CREDIT CLOSE: Spreads steady, January supply eyed
HONG KONG, Dec 17 (IFR) - Asian credit spreads were steady today as few bonds exchanged hands in thin trade.
The iTraxx IG index was set to end the day at 126bp/129bp, largely steady at yesterday's close.
Most investment-grade names were unchanged to a bit wider on the day.
However, CSSC 3-year paper was at T+233bp/T+228bp, while the China Merchants Land 5-year bonds were at T+242/T+237bp, slightly tighter on the day.
Bankers said they were expecting a substantial supply in the first few weeks of January, mostly from sovereigns and Korean credits with some investment-grade Chinese corporate issuers to follow.
Some, therefore, feel that the expectation of heavy supply will make investors choosy about buying new bonds.
High-yield bonds were also mostly flat, but there was more interest coming from private banks.
Gajah Tunggal 2018s were trading a bit lower at 98.25/99.25.
The Republic of Indonesia 2018s were at 90/90.75, while the 42s were at 70.50/72.50.
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