HONG KONG, Nov. 6 (IFR) - The Asian credit markets were
focused on new issues, with the overall mood subdued ahead of
the US presidential elections.
The new longer-dated bonds from Hutchison Whampoa
outperformed the 5-year bonds, which were quoted around T+134bp,
only a touch tighter than reoffer price of T+135bp. The 10-year
rallied to T+156bp from T+162.5 at reoffer.
With the Republic of Indonesia having mandated banks for a
potential Global sukuk, attention switched to Indonesian bonds
which continue to be bid up.
The ROI 2022s were at 107.50 and 2042s at 170.5, while PLN
2024s were at around 103. Investor meetings are starting later
this week for a sukuk issuance.
"We are waiting to see which tenors the government is
planning the sukuk issuance as the sukuk is expected to be
cheaper than the conventional bonds," said a credit trader.
There was also anticipation of more supply from India. Power
Finance Corp met investors last week and the market is
speculating a bond to come soon. Bharat Petroleum 2022s had
backed off from the tights of T+279-275bp to T+285bp bid.
Chinese high-yield paper was trading firm but Soho China
lagged as some players felt it was priced too tight.
"Given that everything is trading tight, we don't see
Chinese high yield papers rallying at the moment, although they
did trade with a positive tone around a quarter point higher
today," a high-yield trader said.
Soho China traded a quarter point down. The 2017s were
98.75/99.125 and the 2022s were 99/99.75.
The iTraxx Series 18 index was quoted at around 113.15bp
compared with yesterday's 116bp mid.