HONG KONG, March 5 (IFR) - Activity in Asia's credit markets
continued to pick up in the aftermath of President Vladimir
Putin's decision to order troops near the border with Ukraine to
return to base.
The Asia ex-Japan IG iTraxx index was quoted at 128bp/130bp,
4bp tighter than at the open, while spreads on cash bonds were
3bp-5bp tighter on average, mostly recovering after widening on
The unwinding of safe-haven bids pushed the yield on 5-year
US Treasuries 1bp higher to 1.543%/1.541% and the yield on the
10-year 8bp higher to 2.6987%/2.694%, while the appetite for
riskier credits returned.
Spreads on sovereign bonds were marked up by around 5bp
across the board today, with bonds from the Philippines and
Indonesia attracting particular interest. Indonesia's long end
was some 20 cents higher, with the 2044s quoted at 108.45/108.69
today from 108.25/108.50 yesterday. Philippines 2034s were
quoted at 124.12/124.06 today from 124.06/124.01 yesterday.
The markets also showed no response to news reports
yesterday that North Korea tested a new multiple-rocket
launcher. In fact, spreads on South Korea bonds tightened by
2bp-3bp today and those from its neighbor China were 3bp-5bp