** The main stories out of the region**
A higher-than-expected US CPI print, which led to an initial Treasury selloff on reduced expectations of Fed rate cuts, found support in Asia hours. Indeed 10yr Treasury yields end a little lower on the day at 4.6%. Asia emerging markets were weak, with most benchmark govie/agency bonds wider on the day, notably in Indonesia (+5bp) and the Philippines (+6bp).
In terms of newsflow, Alibaba confirmed that it had come to an agreement to supply AI to iPhones in China, a positive for spreads, as Apple will look to regain lost share with a domestic AI product. In addition, the ONGC NTPC Indian JV acquired Ayana (EV $2.3bn), to support renewables ambitions.
The new issue market came alive today. Hubei United Development came with a 3y USD deal, with an IPT of 5.5%a. We estimated FV of 5%. We also had mandates for Taiwan Cement in euros (5yr), we assessed fair value at z+110bp. Finally, a Mirae Asset Securities $ 3yr was also mandated.
Best & Worst (zsprd, bp)
Source: Bloomberg