ASIA CREDIT CLOSE: Recent China property issues remain under pressure

Mon Jan 28, 2013 3:00pm IST

SINGAPORE, Jan 28 (IFR) - Trading was muted in the Asia session, with light two-way flow and recent China property names continued to bear the brunt of the supply overhang, with last week's price rout failing to find value hunters in any meaningful way.

As a measure of the market's light flow, the iTraxx IG index is looking to end the day unchanged at 106bp/107bp.

The Treasury sell-off which emerged on Friday thanks to bullish comments from the Davos economic forum on the state of global growth, together with an unexpected high volume of early LTRO payments by European banks has been positive for Asian credit spreads, albeit in the context of broadly unchanged secondary dollar bond prices.

In single name CDS most counters were unchanged with the exception of Thailand, which tightened 3bp to 87bp/95bp, with the wide bid/offer spread also telegraphing the market's illiquid state.

The recently issued Agile perp traded up a quarter from this morning's low 94.5 low print, as did the Future Land, which were last at 98.25, while the new Powerlong shed a quarter to 94.5 bid.

Investment grade paper has been solid, as shown by the holding on to its initial tightening after pricing last week of the new Shinhan Bank 5.5-year, which are closing out at 126bp/124bp.

Treasuries are likely to dominate the input into Asian credit in the short term, with the key 1.95% level on the 10-year seen as crucial support, beyond which the 2% barrier beckons and which could be breached via a yield spike. In these circumstances the recent solidity of Asian credit spreads might be put to the test.

jonathan.rogers@thomsonreuters.com

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared
People walk in the Wipro campus in Bangalore June 23, 2009. REUTERS/Punit Paranjpe/Files

Wipro Q4 net profit beats estimates, rises 29 percent

Wipro posted a 29 percent rise in its fourth-quarter net profit, beating expectations, helped by increased IT spending by its customers. For the quarter ended March 31, the company said it earned 22.27 billion rupees compared with 17.29 billion rupees a year earlier.  Full Article | Full Coverage 

REUTERS SHOWCASE

Election 2014

Election 2014

India holds biggest day of voting with BJP gaining strength  Read | Full Coverage 

Market Eye

Market Eye

Sensex jumps 351 points, snaps 3-day losing streak  Full Article 

Insider Trading Case

Insider Trading Case

Ex-Goldman director Rajat Gupta to surrender June 17 in insider case.  Full Article 

Expansion Plans

Expansion Plans

Reliance Industries, HPCL Mittal plan refinery expansions.  Full Article 

S&P on India

S&P on India

S&P: India's ratings to depend on next govt econ, fiscal policies.  Full Article 

Ambitious Aim

Ambitious Aim

In green car race, Toyota adds muscle with fuel-cell launch.  Full Article 

Deal Talk

Deal Talk

Piramal to buy 20 percent stake in Shriram Capital for $334 million.  Full Article 

Bond Market

Bond Market

A star abroad, RBI boss riles bond traders at home  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage