February 20, 2017 / 8:41 AM / in 8 months

ASIA CREDIT CLOSE: Credits steady in muted markets on US holiday

SINGAPORE, Feb 20 (IFR) - Asian credits were broadly unchanged in muted markets with a positive undertone as a result of firmer regional equities.

The Nikkei ended trade today up a marginal 0.09%, while the Hang Seng was rising 0.6%.

“The credit markets are pretty dead today with US Treasuries shut for the US Presidents’ Day holiday,” said one Singapore-based trader.

In investment grade, new issues from China were holding up well. Huawei’s 3.25% 2022s were seen at 129bp/126bp, against reoffer spread of 132.5bp over US Treasuries, while its 4.0% 2027s were at 160bp/157bp, versus reoffer at 162.5bp.

ICBC’s 2.875% 2022s were quoted at 107bp/105bp.

High-yield issuer Qinghai Provincial’s 7.25% 2020s, reoffered at par, were still performing strongly with quotes at 102.5/103.0.

Mongolia bounced on positive news that the government had signed a financing agreement with the International Monetary Fund. The agreement is for a total external financing package of around US$5.5bn.

Development Bank of Mongolia’s March 2017 bonds, a proxy for the sovereign, were trading up 2 points to 99.400 in early Monday trading, according to Tradeweb.

Asian credit spreads were flat with the iTraxx Asia IG index at 101bp/103bp.

Reporting by Kit Yin Boey; editing by Dharsan Singh

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