January 11, 2018 / 9:07 AM / 8 months ago

ASIA CREDIT CLOSE: New issues gain amid busy primary markets

SINGAPORE, Jan 11 (IFR) - Newly priced bonds were firmer on Thursday, lending support to a hectic issuance schedule in the Asian primary markets.

At least seven Asian deals were launched today despite concerns raised over reports that China was scaling back purchases of US Treasuries, which sent Treasury yields up.

But sentiment improved later in the day, opening up a window for a couple of late deal launches.

“People on the ground are now looking for clearer cues from the upcoming release on CPI and production data from the US,” said one trader.

Among the new bonds priced yesterday, BOSC’s 3.125% 2021s were tighter at 123bp/122bp over Treasuries from a reoffer spread at 127bp over 2-year Treasuries.

Lai Fung’s 5.265% 2023s were indicated at bids of around reoffer at par, while ICTSI’s 5.875% perps callable in 2022 were firmer at 100.5/100.3 after pricing yesterday at par.

Sovereign bonds, particularly from China and South Korea, continued to enjoy a strong bid.

China’s 2022s were heard at a wide range of 4bp/1bp, having rallied since December when quotes were above 15bp, while the 2027s were at 17bp/14bp, tightening from the levels of around 30bp seen last month.

Asia credit spreads narrowed with the iTraxx Asia ex-Japan IG index quoted at 60bp/61bp, 2bp tighter from yesterday.

Reporting by Kit Yin Boey; Editing by Vincent Baby

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