SINGAPORE, Nov 2 (IFR) - Asian credits were mostly unchanged in constructive markets as the overnight FOMC statement reinforced expectations of a December rate increase in the US.
“The markets have already priced in expectations for the December hike, so there was no immediate impact on the market,” said one DCM syndicate banker.
Asian credit spreads were about 1bp tighter with the iTraxx Asia ex-Japan IG index quoted at 74bp/75bp.
New deals saw mixed performances. ICBC’s 3.538% 2027s rallied strongly with the notes indicated at 103bp/101bp after pricing yesterday at 118bp over US Treasuries.
The bank’s 2.957% 2022s also tightened but to a lesser extent at 93bp/91bp from reoffer at 95bp.
China MinMetals’ 3.75% perpetual notes dropped to 99.7/99.9 after pricing yesterday at par, indicating that the pricing could have come at too tight a level.
Huarong’s jumbo deals remained under pressure. The 2022 FRNs remained at reoffer levels, while the fixed 2027 notes were a touch wider from reoffer of 190bp over Treasuries at 192bp/190bp.
The 2047s were heard in the region of 99.40 against reoffer at par while the perpNC5 were seen at 100.1/100.16, slightly above reoffer at par. Huarong’s Singapore dollar 2025s were around reoffer levels of 3.8%.
Reporting by Kit Yin Boey; Editing by Vincent Baby