SINGAPORE, July 21 (IFR) - Secondary trading in Asia was
muted today with Tokyo closed for a public holiday.
With the Treasury market also closed until London opened
this afternoon, there was little liquidity in the
investment-grade segment, traders said.
The iTraxx Asia ex-Japan Index, which widened to 110bp on
Friday before closing at 105bp, stayed flat at 105bp.
"There was quite a bit of geopolitical concern on Friday, so
people are still cautious this week, but Asia is again is
relatively isolated," a trader said.
Indonesian sovereign paper is expected to get a small
knee-jerk rally, when the official winner of the election is
announced tomorrow. The local media has already named Joko
"Jokowi" Widodo as winner as the finished vote count shows 63%
in his favour,
"There is a rally in Indonesian equity space and the rupiah,
but the reaction in the bond space is muted," said a second
trader. "Much of the optimism may have been priced in."
In the high-yield segment, there was buying from private
banks today. Evergrande Real Estate 2015s and 2018s changed
hands today at higher prices than on Friday, a third trader
Lai Sun Garment, which printed CNH650m 4-year bonds at par
last Thursday, saw the notes trading up to 102 today.
"Investors seem to like the secured nature and the
attractive yields on the notes," said a third trader.
Chinese property bond issuers are managing inventories for a
glut of supply in the near future. Sunshine 100 China Holdings
and Sino Ocean Land have already announced mandates, while
developers like Redco Properties Group, Jingrui Holdings, and
Modern Land (China), Roadking and CIFI are said to be also
preparing to tap the market.