SINGAPORE, Aug 20 (IFR) - Risk sentiments remained steady
today on thin trade as market players kept to the sidelines
ahead of the release of minutes from the US Federal Reserve
later in the day.
Asian stocks were just a touch higher, with the strong
overnight rally in US markets seemingly not doing anything to
move investors. Chinese equities bucked the trend, slipping on
worries over a strong pipeline of Chinese IPOs.
Asian credit spreads were slightly weaker with the iTraxx
Asia IG index largely flat at 100bp/102bp.
"It was super quiet in the morning and there were some
trades with some clearing of long-shorts ahead of the Fed
minutes," said one Singapore-based trader.
"The market tone is stable and any new issue that will come
out is likely to trade well. There is still a lot of cash out
here, and investors need supplies and they need yields."
He pointed to Australia-based ME Bank, which has just tied
up a AUD300m Tier 2 note earlier today at a spread of 270bp over
BBSW. The bonds have tightened 20bp in secondary trade.
Shanghai Electric 2019s also outperformed with a strong bid
seeking very few loose bonds in the markets. They were quoted at
112bp, well inside its reoffer spread of 140bp.
Sinopec 2024s were seen at 140bp, with CCB Asia's newly
priced Tier 2 notes quoted at 55bp/53bp.
Kexim bonds were generally benefiting from good demand for
Korean paper. Its 2019s were quoted at 77bp/74bp while the 2026s
were at 95bp/93bp.