Tingyi, AK Bars print notes; Asian bonds firm; Indonesia active; China Minmetals widens

By Christine Van Dusen

Atlanta, July 30 – Asian bonds started Thursday’s trading session on firm footing, with investment-grade cash bonds moving as much as 3 basis points tighter, but the rally was short-lived – by the end of the Asian session, when the United States released gross domestic product numbers, the notes closed unchanged.

Treasuries bounced around on the headline that the U.S. economy improved in the spring, news that raises the likelihood of a rate hike in September.

Against this backdrop, Tingyi (Cayman Islands) Holding Corp. and Russia’s AK Bars Bank OJSC sold new notes.

After a mix of short-covering for recent issues and oil-related names from Asia, profit-takers jumped into the fray, a London-based trader said.

China Minmetals Corp.’s new 3½% five-year notes that priced at 99.501 to yield 3.61%, or Treasuries plus 195 bps, traded at 200 bps before closing at 200 bps bid, 197 bps offered. On Wednesday the notes were seen at 205 bps bid, 202 bps offered.

The company’s other new tranche – 4¾% notes due 2025 that priced at 99.858 to yield 4.768%, or Treasuries plus 245 bps – moved to 251 bps, then 252 bps, on Thursday after Wednesday’s level of 257 bps bid, 252 bps offered.

Deutsche Bank, HSBC, JPMorgan, ICBC and Citigroup were the bookrunners for the Regulation S deal.

Looking to Indonesia, activity was strong and “whippy,” with some “decent bursts of selling,” a trader said.

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