HONG KONG, Feb 19 (IFR) - Investment grade credits were
better bid in what traders were calling the first real day of
trading. "The market is quite firm," said one trader in
Singapore. Analysts were seeing two-way flow in the space, but
buyers were outweighing sellers on most bonds.
The activity was mostly on the cash side, as the Asia iTraxx
IG index ended unchanged to 1bp tighter quited at a mid-market
level of 110bp. Bonds, though, were doing much better with
Philippines 2037s ending the day some 25ct stronger.
Traders reported piecemeal interest in Hong Kong property
developers too, especially in the peripheral names. Nan Fung
2017s, for instance, ended almost 10bp tighter in the day at
205bp over, while Lifestyle's bonds closed at 215bp, almost 10bp
tighter as well.
Thai and Malaysian credits were in high demand as well, in
spite of the looming supply by Krung Thai Bank, which roadshowed
before the Lunar New Year but did not get to price the
However, with rumours that the lender will wait until its
full year earnings are out before issuing, investors started
buying again and most bonds in the Thai bank sector were 3bp-5bp
Malaysian banks were about 5bp tighter across the board,
with bellwether Maybank 2022s closing at 217bp.