Asian bonds soften; Bluestar sees support; Woori Bank rebounds; Pacific Rubiales in news

By Christine Van Dusen

Atlanta, June 5 – Risk sentiment remained cagey on Friday amid continued rate volatility, with high-grade cash bonds from Asia widening slightly.

“The rally in U.S. Treasuries kept accounts sidelined while we had some selling in recent issues,” a source said.

Among those new issues was a re-pricing by Chaoyang-based chemical product manufacturer China National Bluestar Group Co. Ltd., which in May sold $1 billion in two tranches but on Thursday tried again due to a “contractual oversight,” a market source said.

The $500 million 3˝% notes due in 2018 re-priced at 99.893 to yield 3.538%, or Treasuries plus 250 bps. On Friday the notes moved to a tight of 272 bps before moving to 288 bps and closing the Asian session at 298 bps bid, 284 bps offered, the trader said.

The $500 million 4 3/8% notes due in 2020 re-priced at par to yield 4 3/8%, or Treasuries plus 270 bps.

“The five-year was better supported, with bonds reaching tights of 248 bps and closing at 260 bps bid, 255 bps offered,” he said.

The new issue from Korea’s Woori Bank hit a low of 98˝ on Friday before rebounding to close, a trader said.

“Last seen at 98 7/8 bid, 99 1/8 offered,” he said.

In other news, Latin America-focused Pacific Rubiales Energy Corp. was back in focus on Friday after 90% of note holders consented to a takeover plan by Mexico-based Alfa SAB de CV and Harbour Energy Ltd.

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