ASIA CREDIT CLOSE: Market firmer on end-quarter window dressing

Mon Mar 31, 2014 5:15am EDT

Related Topics

SINGAPORE, March 31 (IFR) - Asian bond markets were firmer today amid financial institutions' window dressing for the end of the first quarter, as well as real money buying.

Citic Pacific bonds continued to see active trading across the curve. Its perps due 2016 and 2018 were indicated at 103.125/103.625 and 107/107.5, respectively.

Its paper due 2023 was quoted at 105.725/105.25, that due 2018 at 107.75/108.5, that due 2020 at 105.5/106 and that due 2021 at 106/106.75, according to one dealer.

The high-yield bonds of Chinese property names, such as Kaisa Group, KWG Property and Evergrande Real Estate Group, also rebounded a further 25bp or so.

West China Cement met investors in Singapore today, although it did not indicate at any upcoming bond issuance.

Yields on Chinese investment-grade names also tightened several bps, traders said. Yields on Chinese oil names, such as Sinopec and CNOOC, were 1bp-2bp tighter.

Indian banks were faring well with spread tightening about 5bp on optimism over the country's upcoming election. "Indian banks are doing well also because of lack of supply," said one trader.

Among sovereign names, Indonesia's due-2044s was active at 109.3/109.5.

Overall, Asia ex-Japan iTraxx IG Index was 126bp/128bp, up 2bps from last Friday.

Indonesian state-owned gas company Perusahaan Gas Negara named ANZ, Standard Chartered Bank and JP Morgan as leads for its debut US dollar bond issue, two sources told IFR.

The company is rated in line with the sovereign at Baa3/BB+/BBB-.

Korea Resources has mandated Citigroup, Bank of America Merrill Lynch and HSBC for a US dollar-denominated bond.

The government-connected miner is expected to price a deal towards the end of April.

Korea Resources, rated A1/A+, last issued a US$500m 144A/Reg S bond in April 2013 at 99.623 to yield 2.205% on a 2.125% coupon, which was a spread of 150bp over US Treasuries.

lianting.tu@thomsonreuters.com

FILED UNDER: