October 3, 2016 / 8:56 AM / 10 months ago

ASIA CREDIT CLOSE: Credits well bid as China holidays begin

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HONG KONG, Oct 3 (IFR) - Asia's primary market took a breather on Monday with China off this week for the National Day holidays.

Despite the lull in new issues, as well as lower trading volumes, credits were bid fairly well with many names moving 3bp-4bp tighter.

The iTraxx Asia ex-Japan investment grade was 3bp tighter at 115.50/117.00.

"It was a pretty stable day with most benchmark names tighter," said a Singapore-based investment grade trader. "The positive session on Friday in the US helped.

I think it would also be good to see a bit less supply this week so the market can digest all of the new issues we've had."

Sinopec's 2026s were being bid about 3bp tighter to yield 2.98%, while long-dated sovereign bonds from the Philippines and Indonesia were mostly unchanged.

CK Hutchison's new US dollar bonds were mostly unchanged, trading around their offer prices.

High-yield names also fared reasonably well. Fantasia Holdings' US$400m five non-call three bonds were about 3bp tighter to yield 7.2%.

Recent Additional Tier 1 issues had a mixed session. Citic's AT1 fell a quarter of a point in the morning session but recovered somewhat by the afternoon and was being bid at 99.183, according to Tradeweb.

China Cinda Asset Management's AT1 was spotted up about a quarter of a point to 98.75. (Reporting by Spencer Anderson; Editing by Vincent Baby)

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