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CREDIT UPDATE: Asia Primary Picks Up, Spread Continue To Drift Wider

CREDIT UPDATE
  • US futures dipped as with Nasdaq futures leading the way as Asian tech stocks ticked lower while traders await more jobs data due later today. The MSCI Asia Pacific Index erased most of its 0.8% rise, with Japan's Nikkei 225 down over 1% while benchmarks in China, Hong Kong and South Korea have also turned lower. JPMorgan downgraded Chinese stocks, citing weak policy support and potential volatility ahead of the US election.
  • Another busy day in the Australia primary markets, Scentre Group priced a 30NC5 A$ at ASW+230bps (Guidance +250-260bps) Woolworths priced 6.5yr A$ at ASW+138bps (Guidance+145bps), Auswide priced a 3y A$ at ASW+138bps (Guidance +140bps)
  • The focus in secondary has just been largely on trading of the recent new deals, MQGAU is now trading wider than issue while QBEAU is -2/-5bps.
  • Asia primary was busy today, while IG spreads widened 1bps again today and now trade +6bps for the week. there has been little to mention in secondary today while flows into Indonesian, Philippines & Malaysian bonds remain positive
  • Aus iTraxx CDS is unchanged at 63.5bps & while Asia Ex-J iTraxx is 1bp lower at 97bps
  • Headlines: RBA Will Struggle With Jobs Goal If CPI Stays High, Bullock Says,
  • Primary: GF Securities 3Y +115a, San Miguel PerpNC5 9a, Woodside Energy $10Y +165a, 30Y +195a, Mitsui $ 5Y +115a, Qingdao City Construction $ 3Y at 6.35%a, ING Perp AT1 at 7.875%a.

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