SINGAPORE, May 29 - Asian credits moved sideways in light trade today, while the outperformance of new bonds from India's Syndicate Bank encouraged ICICI Bank to launch a tap.
The iTraxx Asia IG index was steady at around yesterday's closing level of 109bp.
Syndicate Bank, a mid-sized public-sector lender, priced 5.5 year US dollar bonds yesterday at 140bp over US Treasuries. The bonds traded tighter today at 133bp over UST.
Traders said there was some profit taking in Indian names, but prices still had buying support from retail investors.
With the market mostly quiet, traders said nearly of the activity was focused on benchmark names today.
After some profit booking yesterday, Pertamina's 2044s were up at 102.375 today from 101.50 yesterday.
Indonesia's 2044 bonds also recovered to 118.50 from yesterday's 118.00. Philippines 2034 and 2037 bonds were up 0.75 points at 130 and 114, respectively.
China 5-year CDS fell 1bp to 53bp-56bp, those of the Philippines were down a couple of basis points at 86bp-92bp, while the remainder were mostly steady. Korea was at 53bp-56bp, Thailand was at 118-128bp, Indonesia at 142-147bp, Malaysia at 86-94bp and Vietnam was at 205bp-220bp.
"The primary market is slowing and, if there is not much supply, there will be further tightening of spreads in the secondary," said a Singapore-based trader.