SINGAPORE, Jan 17 (IFR) - Traders faced a round of
profit-taking as investors tried to cash in on a US Treasury
rally that buoyed cash prices of Asian investment-grade bonds
this week. Most bonds with a high correlation to Treasuries were
under pressure, as a result.
"There is no Treasury market on Monday because of the
(Martin Luther King Day) holiday in the US, so investors want to
square off positions today," said a trader.
The old 2023s of Sinopec, for instance, were last quoted at
a mid-market spread of 163bp over US Treasuries, 4bp wide to
where they were being quoted yesterday. Even the new 2024s bonds
of KNOC were not immune and they widened by about 3bp to close
Sovereign bonds were a bit more resilient as they stuck to
their spread over the US benchmark. The new 2024s of the
Philippines were quoted at 101.85/102.00, stronger in price
terms, while the 2044s of Indonesia were at 102.00/102.50. Both
were reflecting the overnight gains in US Treasuries.
The new Bank of Baroda 2019s widened slightly, last quoted
at 324bp over US Treasuries, after having closed yesterday at
320bp, 5bp tight to reoffer.
However, the rest of the Indian FIG sector tightened by
about 3bp on average, with ICICI 2018s last quoted at 296bp, a
recent tight for the name.
With so much activity on the cash front, CDS ended the day
mostly unchanged with the Asia ex-Japan IG iTraxx index quoted