** The main stories out of the region**
The U.S. treasury curve steepened into the Asia open and then for the most part traded side-wise. We are now closing 10yr yields c. 1bp wider at 4.6%. Asia EM govie/agency bonds were mostly unchanged. That said, in terms of outliers, Indonesia was 3bp wider. As expected (5.75%) rates were left unchanged by the Indian central bank. Thailand was -3bp tighter on the day, a day in which the Prime Minister asked for the central bank to cooperate on rate cuts.
In terms of newsflow, Baidu reported Q3 results that were weaker than consensus, overall negative for spreads. China released statistics on residential property price growth, and while it was negative 5.4% YoY in January, the decline is slowly reducing. Finally, Vedanta was reported to have gained approval from secured and unsecured creditors for the demerger.
In terms of supply, Mirae came with a $ 3yr benchmark with an IPT of T+125a, we had a fair value of T+90bp. We also saw a $ mandate from Indian toll project, Varanasi Aurangabad. The deal is expected to be a benchmark 9NC3.
Best & Worst Performers (zsprd, bp)
Source: Bloomberg