SINGAPORE, Oct 26 (IFR) - Asian credits were holding steady in a rather quiet market where the focus was mostly on China’s offering of rare sovereign bonds.
China has been in the market today selling a dual-trancher of five and 10 years to raise up to US$2bn.
“Everyone is watching how the bonds will do, though Chinese state-owned enterprises are a touch weaker after rallying in the last few days,” said one trader.
Korean investment-grade credits were tighter on continued strong demand. Korea Housing Finance Corp’s new 2022s, priced yesterday at 100bp over US Treasuries, narrowed to 97bp/96bp.
Bonds from Kexim Bank were also tighter, with the 2.5% 2020s seen at 90bp/86bp and the 3% 2022s at 98bp/96bp.
The constructive tone also supported high-yield credits. Mongolia’s 2023s, priced yesterday at 5.625%, were firmer at 100.7/100.8 today.
Press Metal Aluminium’s 4.8% 2023s were at 101.4/101.6, still rallying on robust investor appetite after pricing at par on Monday.
China Grand Auto’s 5.625% perpetual notes were faring well at 100.00/100.2 against reoffer at par.
Asian credit spreads were tighter with the iTraxx Asia IG index at 73bp/74bp, 1bp narrower than yesterday’s close.
Reporting by Kit Yin Boey; Editing by Dharsan Singh