HONG KONG, May 15 (IFR) - Asian credits traded in a narrow
range on Thursday as prices of Chinese property bonds recovered.
The better market tone allowed China developer Country
Garden to launch a 5-year US dollar-denominated bond that it had
put on hold last week amid a sell-off in property bonds. Orders
for the bond have passed the USD800m mark.
The iTraxx Asia IG index was seen around 115bp today from
114bp/116bp at the previous day's close.
"There was some profit taking in Indian banks, which caused
the spreads to widen by 3-5bp after the rally since last week
and Chinese banks also saw some buying activity with fast money
switching out from ICBC's old bonds to new ones," said a
Industrial and Commercial Bank of China, Singapore branch's,
3.5-year bonds, which priced yesterday, traded 10bp tighter than
its reoffer yield at 215bp over Treasuries.
ICBC was the only Asia borrower in the US dollar market
yesterday, but the improving market tone prompted three more
dollar deals to launch.
Chinese property bonds continued to traded higher on a
technical rebound, rising a point today. Country Garden's 2021s
were trading around 92.5-93.25, up 0.125 points on the day.
The yield on Lenovo Group's latest US dollar bond issue
traded tighter at 230bp-225bp over Treasuries, Tencent Holding's
latest US dollar bonds also traded tighter to yield 139bp-136bp
However, bonds of some Chinese companies softened. The yield
on China National Petroleum Corp's 2023s widened by 3bp to a
spread of 142bp-139bp, while the yield on State Grid Corporation
of China 's 2024s also widened 3bp to 140bp-135bp over
Treasuries. China Overseas Land's 2024s also widened 3bp to a
spread of 327bp-322bp over Treasuries.
Sovereign bonds from Indonesia and the Republic of the
Philippines also rose. Indonesia's 2044s traded at a price of
118, up from a range of 116-117 range, and the price of its
10-year bonds rose 50 cents.
The price of the Philippines 2024s rose by 50 cents.
Perusahaan Gas Negara's bonds rose 0.75 points to 100.75 and
Pertamina's 2043s rose a point to 92.75.