EM ASIA DEBT-Asian bonds steady as stocks weaken

HONG KONG, Nov 5 (Reuters) - Asian dollar bonds were
largely flat on Thursday, with investors reluctant to take on
more risk following weakness in regional stock markets and
ahead of more supplies.

An unchanged rate outlook by the U.S. Federal Reserve also
failed to provide trading incentives.

A new bond offering from Chinese property developer Agile
Property (3383.HK) traded slightly higher than the offer price
after the $300 million deal received orders of around $1
billion.

The broad market was steady to slightly lower as investors
booked profits on recently issued bonds. The Asia ex-Japan
iTraxx investment-grade index <0#ITAIGMPBMK=> was quoted at
117/124, compared with Wednesday's 121.75.

"We are watching the equity markets leak red ink and people
are not bold enough to do anything now," said a Singapore-based
trader.

Overnight, Agile Property sold 7-year bonds not callable
for 4 years to yield 10.5 percent at a price of 97.562 cents on
the dollar. [ID:nN04650582] The bond traded at par in Asian
time.

The was mainly sold to Asia where investors took up 55
percent. Europe accounted for 20 percent and U.S. the rest.

By investor type, funds comprised 55 percent, banks 12
percent, insurance companies 7 percent and private banks and
others 26 percent of the allotments.

Credit markets now expect more issuance from sub-investment
grade Chinese and Indonesian names and that is beginning to
cause some concern.

Traders said a roadshow by Indonesian coal mining company
Bumi Resources (BUMI.JK), which hopes to sell dollar bonds, was
causing a sell-off in other coal-related names like PT Adaro
Energy Tbk (ADRO.JK) and PT Bukit Makmur Mandiri Utama (BUMA).

Adaro's bonds due in 2019 69368KAA4= were trading at
99.25 cents on the dollar after trading at a high of 100.

The bonds have rallied from 98 cents, the low struck
following last month's issue price of 99.141.

Nomura International said the market expectation of 11.5-12
percent yield for a 7-year bond from Bumi was a fair one,
relative to BUMA's 2014 bonds SG046362934= trading at a yield
of around 11.75 percent.

"Our view has taken into consideration the spread
difference in the 5-year and 7-year USD swap rate of about 50
bp and the fact that Bumi Resources owns coal assets versus
BUMA being the coal mining contractor," it said in a note.

Philippine bonds were steady even after annual inflation
accelerated further in October, broadly in line with market
expectations. [ID:nMAN531416]

The bonds due in 2034 718286BG1= were quoted 97/98.

The 5-year credit default swaps PHGV5YUSAC=MG were
unchanged at 182/192 basis points (bps).

For history on TRX Emerging Asia Index click on --
here
sp (Reporting by Umesh Desai)