Philippines prints bonds; oil prices, Greece put pressure on EM notes; roadshows ahead

By Christine Van Dusen

Atlanta, Jan. 6 – The Philippines sold notes while investors avoided risk on Tuesday – and Asian bonds moved as much as 10 basis points wider in trading – as oil prices fell and new concerns about Greece arose.

“With the 10-year United States Treasury going sub-2%, outright sellers emerged, pressuring spreads to move wider,” a London-based trader said. “The China oil and gas complex underperformed, with spreads 8 bps to 15 bps wider.”

On the list of underperformers were China Petrochemical & Chemical Corp.’s (Sinopec Group) 2024s and China National Offshore Oil Corp.’s 2023s and 2024s.

In other news from Asia, Malaysia’s 1Malaysia Development Bhd. made headlines after failing for a second time to pay a loan that was due in December.

And sovereign bonds from Indonesia finished Tuesday’s session a ½ point lower, he said.

Looking to Russia, bonds were under pressure again, as oil prices dropped, a London-based analyst said.

“Ten-year oil and gas names are generally being marked 35 bps to 40 bps wider,” he said. “Kazakhstan is also being badly hit by oil weakness this morning, moving 25 bps to 30 bps wider in sovereign cash.”

In deal-related news, China’s CAR Inc. and China Huarong Asset Management Co. Ltd. set out on roadshows and State Grid International Development Ltd. planned a marketing trip.

Market sources also were whispering about a possible issue of dollar-denominated notes from Korea Export Import Bank.

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