SINGAPORE, Oct 13 (IFR) - Asian credits were a touch weaker
as sentiment turned negative amid declining equities across the
region after China printed disappointing trade data.
China's exports fell a sharper-than-expected 10% year on
year in September, fuelling concerns of a slowing economy in
Asia's biggest market.
MSCI's broadest index of Asia-Pacific shares outside Japan
Thai stocks sank 2.4% amid growing concerns about the health
of the 88-year-old King Bhumibol Adulyadej. The kingdom's 5-year
CDS widened between 5bp and 15bp earlier in the day with the
level at 98bp/104bp in mid-afternoon.
Outstanding US dollar bonds of Thai issuers were around
5bp-10bp wider, although Kasikornbank's recently priced 2022s
were holding up at 100.159.
"The Thai bonds look optically wider, but you can see buying
opportunities, too," said one trader.
"Its economy is still strong and it has got solid US dollar
onshore funds, while foreign holding of Thai government bonds is
low at 15%. Fundamentals remain strong there."
The broader high-grade bonds stayed resilient, while the
high-yield notes were a quarter of a point lower.
Tenaga's new due 2026s were indicated at around 147bp over
Treasuries, slightly wide of reoffer spread of 145bp.
Credit spreads were about 1bp wider with the iTraxx Asia
investment-grade index at 101bp/103bp.
(Reporting by Kit Yin Boey; editing by Dharsan Singh)