Asian bonds rally; liquidity stays thin; Ukraine sees buyers; Indonesia sees some action

By Christine Van Dusen

Atlanta, Dec. 18 – Bonds from Asia rallied along with the larger market on Thursday, with high-grade names moving between 3 basis points and 10 bps tighter amid very thin liquidity.

The 2017 notes from China-based Tianjin Material & Equipment Group Corp. traded up while China National Offshore Oil Corp.’s (Cnooc) notes were among the oil companies to tighten between 7 bps and 10 bps, a London-based trader said.

“India financials are 5 bps tighter while corporates are still lagging, despite seeing good real-money demand,” a trader said. “China property bonds are 1/8 point to 3/8 point higher.”

The Indonesia curve gapped higher, with the 2024s seen at 112 3/8, he said.

“The London open market rallied further, with Indonesia’s 2024 trading at 112.8 and Indonesia’s 2044 at 123.”

Later in the session, Indonesia’s 2044s moved down to 122, another trader said.

In other trading on Thursday, Latin American bonds opened with strength, following a “super-strong” Wednesday, another London-based trader said.

“Oil prices and the U.S. Treasury move are driving sentiment,” he said.

From Ukraine, buyers have emerged for sovereign bonds so far this week, said Fyodor Bagnenko, a fixed-income trader with Dragon Capital.

“Liquidity did not really return, and prices remained mostly guesswork,” he said.

© 2015 Prospect News.
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