Morning Commentary: Asian bonds stabilize; Petronas, Hyundai Capital tighten; India well-bid

By Christine Van Dusen

Atlanta, March 27 – Bonds from Asia were stable on Friday morning, with high-grade cash bonds unchanged to 2 basis points tighter, a London-based trader said.

“Oil names remained in focus after the recovery in crude,” he said.

Malaysia’s Petroliam Nasional Bhd. (Petronas) saw its new 2025 and 2045 bonds tighten 5 bps amid support from real-money accounts, he said.

The deal included $1.25 billion 2.707% Islamic bonds due in 2020 that priced at par to yield Treasuries plus 110 bps and 3½% notes due 2025 that priced at 99.125 to yield Treasuries plus 150 bps.

Another $1.5 billion 4½% notes due in 2045 priced at 98.767 to yield Treasuries plus 190 bps via BofA Merrill Lynch, CIMB and Deutsche Bank in a Regulation S deal.

“Korea’s 10-year continued to leak wider,” he said.

The recent issue of notes from Korea’s Hyundai Capital Services Inc. – 2 5/8% notes due September 2020 that priced at 99.848 to yield Treasuries plus 125 bps – continued to compress on Friday, as compared to Woori Bank.

“India’s short end remained well-bid while we saw sellers in the 10-year corporates,” he said. “High-yield sovereigns were ½-point to ¾-point lower after the rate move yesterday.”

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