SINGAPORE, Oct 5 (IFR) - Asian credits were relatively unchanged in quiet markets with major Chinese players still out for the week-long National Day holidays.
The market tone was still fairly firm, though there were less trades relative to yesterday's busy sessions.
"I thought the rate volatility might bring out more activity and the back-up in rates would see more buyers," said one trader. "The bids have been very selective, though there has been no sell-off."
Asian credit spreads were about 1bp tighter with the iTraxx Asia investment-grade index at 100bp/102bp.
High-grade cash bonds in the region were generally flat, but Korea Housing Finance Corp's 2021s, which priced yesterday at 85bp over US Treasuries, saw a solid bounce to 80bp/79bp.
Other recently priced bonds were not performing as strongly today. The China Citic perps were quoted at cash prices of 99.5/100.00, unchanged from yesterday. The 4.25% notes were priced at par last week.
Hutchison's new notes of five and 10 years were unchanged from yesterday.
The 2021s were seen at 88bp/86bp, tight to reoffer spread of 90bp, while the 2026s were at 128bp/125bp against reoffer of 130bp.
Reporting by Kit Yin Boey; editing by Dharsan Singh