HONG KONG, July 19 (IFR) - Asian credits gave up gains in
late trading and were set to end the day unchanged as investors
preferred to stay light ahead of the weekend.
However, Multipolar's 5NC3 bonds suffered on debut as retail
accounts flipped the bonds and the price fell more than a point
to around 98.625 after pricing at par.
The iTraxx IG index was set to close at around 131bp/134bp
near yesterday's closing of 132bp/134bp.
"Things started off on a biddish note, around 5bps tighter
and then we saw some real money selling and spreads came back to
unchanged or touch wider on some names," said a Singapore-based
"The street is better off cutting risk on Friday."
Traders said selling was more pronounced in the Chinese SOE
sector, which trader tighter recently.
There were some people selling Chinese SOE bonds, which had
been driving up the market earlier in the week. Activity was
concentrated in the 10-year bucket.
CNPC 23 and CNOOC23s went from around T+70 yesterday to
around T+60bp this morning and are now back to T+72bp/62bp.
In high yield, Shimao's outlook was revised to positive from
stable by Moody's. Its 2017s ended 0.38 down on the day at
110/111, while the 18s were unchanged at 112.50/114.
Traders said they saw some buying of Korea and Chinese CDS
protection. Korean 5-year CDS was around 78bp/81bp and China
5-year CDS was at 95bp/98bp.
The new Indonesia 23s traded up to 103.50/103.75 after
pricing at 99.391 last week.