SINGAPORE, April 29 (IFR) - Credit markets in the region
were holding up against a barrage of new issues. Spreads and CDS
for the most-traded names in the investment-grade segment were
all either unchanged or a couple of basis points tighter.
One trader, however, attributed the apparent resilience to
higher US Treasury yields, which compressed spreads, despite
cash prices either slipped slightly or remaining unchanged.
The yield on the 10-year US Treasuries rose 3.8bp yesterday
after stronger-than-expected housing data renewed investor hopes
that the US recovery is in healthy shape.
The market is feeling better, but that is really because of
Treasury yields," said the trader.
That helped the new bonds of State Grid perform well in
secondary, though the general perception that the issue offered
a decent concession also supported the deal.
The new 5-year bonds rallied 4bp to close at 117bp/115bp,
while the 10-year was quoted at 152bp mid-market, 3bp inside
reoffer. The 2044s were the only one of the three bonds
underperforming as they were wrapped around 147bp/144bp, having
priced at 145bp.
The new 5-year bonds of Korea Land and House Financing were
2bp tighter, quoted at 148bp, and the bellwether of recent
Korean issuance, Woori's Basel III-compliant subordinated bonds,
closed the session 2bp tighter at 218bp/216bp, still wide to
reoffer of 207bp.
The new bonds of Thailand's Ratchaburi were quoted at 167bp
at the close, 8bp tight to the reoffer of 175bp. The bonds had a
second rally when London came in as they had been unable to
breach the 171bp mark during Asian hours.
On the high-yield front, Evergrande was leading the pack
lower with its 2018s last quoted at 91.75. The company was
downgraded today to BB- from BB by Standard & Poor's.
One trader said that accounts seemed to have been expecting
that as the bonds dropped over USD2 in price in the past week.
They moved another 50 cents lower today, though the wider
property space was unchanged to 25 cents weaker.