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APAC Credit Spreads Grind Tighter

CREDIT UPDATE
  • Asian equities are mixed today, with gains in Hong Kong and Japan but declines in China and Australia, following fresh highs in US markets as traders analyzed Powell's comments on the US economy and ahead of day two of his testimony. Meanwhile, China's consumer prices showed minimal growth, indicating ongoing deflationary pressures affecting economic recovery.
  • Aus credit spreads are unchanged to 1bp tighter, Major Bank Sub/Snr debt is flat to 1bps tighter while corps are unchanged.
  • Asia IG is about 1-3bps tighter today with gaming is 2-3bps tighter and again the top performing sector post the sell-off last week, Real Estate is 1-3bps tighter, Fins are 1-2bps tighter, Oil & Gas is 1bps tighter, while Tech is 1-2bps tighter.
  • Asia sovs are mixed, with CHINA again drifting 1-3-bps wider, INDON/PHILIP is 1-2bps tighter, while MONGOL is 10bps tighter.
  • Aus iTraxx CDS is unchanged at 61.5bps & Asia Ex-J iTraxx is also 1bps higher at 92.5bps
  • Headlines: " Vanke Profit Warning Could Spread to COLI, Longfor, Greentown"
  • Primary Deals: Banco Santander 10nc5 Kangaroo Tier 2 Sub Notes at 3mBBSW / SQ ASW +[245]bps area, Rabobank Australia Branch A$ 5-Year at 3mBBSW /SQ ASW+[98]bps area, CLP Power HK A$ bmrk 3Y FRN or FXD Bonds, Korea Ocean $Bmrk 5Y Formosa FRN SOFR+90a,

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