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.