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HONG KONG, May 5 (IFR) - Asian credits traded slightly wider on Friday as equities in the region retreated over concerns about the health of the global economy after recent plunges in commodity prices.
Investment-grade credits, in general, traded 1bp-2bp wider, while oil names were out 2bp-3bp as oil prices fell nearly 5% overnight after data showed a lower-than-expected decline in US inventories, according to a Hong Kong-based trader.
The iTraxx Asia investment-grade index was largely flat and indicated at 91.5bp/93.0bp.
Among the latest issues, Sri Lanka's newly priced US$1.5bn 6.20% 10-year US dollar sovereign bonds, which were heavily oversubscribed, traded well and were bid at a cash price of 101.1 in late afternoon.
Bank of China Singapore's newly priced US$600m three-year floating rate notes traded a marginal 1bp tighter from its reoffer level of three-month Libor plus 77bp.
Bonds of Mongolian Mining Corp, the first company in its country to complete a corporate debt restructuring, this week, traded up.
Its US$395m senior bonds due 2022 were trading at 96-98, versus 95 yesterday, while its US$195m perpetuals, were trading at 35-40, from 25 yesterday.
The trader said focus later today would be the US employment report to be released tonight. "Of course, the French presidential election on Sunday will be another market focus," he said.
Polls so far suggest a clear victory of centrist and independent candidate Emmanuel Macron over far right and anti-euro candidate Marine Le Pen.
"If there is an unexpected outcome in the election, it would be a shock to the market," he said.
Reporting by Carol Chan; editing by Dharsan Singh