SINGAPORE, July 31 (IFR) - Spreads on Asian credits
generally tightened 2bp-3bp today after yields on US Treasuries
During Asian hours, 10-year Treasuries were flat at around
2.54%. Argentina's technical default had a minimal impact on the
Asian credit markets as the strong US GDP numbers negated the
"The news [about Argentina] would have an impact in any
other period, but, now, the sentiment is very strong. So,
Argentina is viewed as an isolated case," said an
emerging-market sovereign bond trader.
Spreads on both Indonesian and Philippine sovereign paper
tightened 3bp-5bp across the curve. "Many investors are still
waiting on the sidelines before the [release of] US non-farm
numbers tomorrow," he said.
Investment-grade paper saw healthy two-way trading with real
money loading up low-beta credits and retail seeking high-beta
bonds, another trader said.
Chexim bonds continued to draw interest with the 2019s being
indicated tighter at 90bp/87 over Treasuries. Sino-Ocean Land's
bonds, issued last week, also traded well with its 2019s being
quoted at a spread of 300bp/297bp and 2024s at 343bp/338bp.
In the high-yield segment, prices were largely unchanged
today with a few names taking a hit from China's anti-corruption
Fantasia saw its 2017s 2019s and 2020s retreat 2 points on
real money and private bank selling after local media reported
its top management could be involved in a high-profile
investigation into Zhou Yongkang, former security chief of
Evergrande Real Estate bonds also took a hit on reports that
its chairman may be involved in an anti-corruption investigation
into the mayor of Guangzhou City.
Evergrande bonds were half a point lower across the curve.
Its 2015s were bid at 5.4%, the 16s at 8.3% and the 18s at 9.2%.