SINGAPORE, Feb 4 (IFR) - Asian credit markets caught up
today with the sell-off that began in the rest of the world
since before the Lunar New Year holiday.
Asian markets have been closed since Thursday afternoon, a
period when the yield on the 10-year US Treasury note dropped
almost 10bp and the Dow Jones Industrial Average fell 2.3%.
"There was quite a bit of catch-up to be done in the
market," said one trader in Singapore.
Bond spreads were 5bp to 15bp wider this morning as soon, as
traders started circulating quotes, and they remained there for
most of the day. Korean bonds continued to show resilience, with
spreads only some 5bp wider on average. The same applied to
The more liquid bonds from Chinese state-owned entities were
among the worst hit, with some trading with spreads as much as
15bp wider in the day. The least affected ones were at least 5bp
wider as well.
The only securities to benefit from the move were the prices
of the recently issued bonds of Indonesia and Philippines, which
were some 25 cents stronger on average. They still did not fully
replicate the rally in the price of the US benchmark.
In spite of the sharp moves, though, traders said there was
hardly any volume. Most of the changes happened only on paper,
as traders bid lower attempting to protect their books.