HONG KONG, July 8 (IFR) - Asian credit markets were active
on Tuesday amid heavy trading of new issues and as investors
continued to pile into Indonesian sovereign debt ahead of the
Spreads on India's ONGC Videsh's Reg S 2019s, which priced
yesterday as part of a dual-tranche deal, widened from their
reoffer levels to 165bp/162bp. The 2024s traded at a spread of
210bp/208bp after being priced at 207.5bp over Treasuries.
India's Bank of Baroda was also out today with a tap of its
USD750m 4.875% July 2019s at an indicated yield of 215bp over
5-year US Treasuries.
Indonesia's sovereign bonds continued its gain on the long
end of the curve, with the 2044s rising as much as 1.5 points to
116.75. Investors also covered short positions ahead of the
country's presidential elections, which will take place on
The results of what has become a tight race between
ex-general Prabowo Subianto and Jakarta governor Joko "Jokowi"
Widodo will be announced as early as July 21.
Prices in Chinese high-yield property bonds extended their
fall today, although the pace of the drop slowed.
Single B and Double-B property credits had risen as much as
3 points in recent weeks based on robust June contract sales,
according to a Hong Kong trader. But prices dropped
three-quarters to a point yesterday and fell half a point more
by this afternoon.
Retail investors were selling their positions in the
property sector, yet bonds that were viewed as relatively cheap,
such as securities issued by Fantasia Holdings Group and Times
Property Holdings remained relatively unchanged, the trader