EM ASIA CREDIT: MNI EM Credit Market Wrap - Asia
Measure Level Δ DoD
5yr UST 4.6% +0.0bp
10yr UST 4.8% +0.4bp
5s-10s UST 18.3 +0.4bp
CDX EM 97.0 0.0bp
CDX EM IG 100.7 0.0bp
CDX EM HY 93.0 0.0bp
WTI Crude 78.2 -0.6
Gold 2667 +3.7
USDCNY 7.3 -0.00
USDKRW 1,460.0 -7.22
USDPHP 58.6 -0.09
USDIDR 16,270.0 -13.00
USDTHB 34.8 +0.09
USDMYR 4.5 -0.00
USDINR 86.6 +0.06
The main stories out of the region
In overnight news, most of the focus was on China. News that the US might consider a more gradual tariff hike, alongside further comments from Chinese officials to stabilise markets and support the economy, were seen positively in equity markets. The China CSI 300 index was +2.6% at the close, however credit remains more cautious on Chinese economic growth, and we see China $ sovereign yields trending higher.
Issuance was relatively strong, with IPT’s announced for several $ issuers, including Tata Capital, Hyundai Capital, Shandong Energy and ICBC Macau. We also saw a mandate for Bank of Communications (BOCOM) for a new $ 3yr frn as a digitally native note. There are 41 bonds issued as digital notes, of which 5 are in USD.