June 15, 2017 / 8:45 AM / 3 months ago

ASIA CREDIT CLOSE: Asian credits weaken a tad post-FOMC

SINGAPORE, June 15 (IFR) - Sentiment softened in Asian markets as equities fell and investment-grade bonds widened a touch.

Falls in US consumer prices and retail sales in May and the US Federal Reserve comments for further gradual tightening hurt investor sentiment.

The Nikkei closed 0.2% lower and the Hang Seng Index was down 1.2%. The Shanghai Composite reversed early losses but was struggling to stay above water having inched 0.06% higher.

IG bonds pushed out 1bp-2bp but credit spreads were flat with the iTraxx Asia IG index hovering at 82.5bp/84bp.

Korea East-West Power’s 2022s, priced on Monday at reoffer of 102.5bp over US Treasuries, were seen around par at 103bp/101bp.

Despite the more risk-averse mood, high-yielding Marble II 2022s were holding up well. The 5.3% bonds, the most recently priced Asian notes, were above reoffer at par with quotes at 100.275/100.517, just a touch lower than morning indications.

Perpetual bonds were also steady. Shui On 6.4% perps were seen at 101.24/101.37 while FWD’s zero coupon perps were slightly higher t 72.5/73.25, just above reoffer of 72.189.

Reporting by Kit Yin Boey; Editing by Vincent Baby

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