** The main stories out of the region**
U.S. 10y treasury yields are 2bp lower at 4.2% in Asia hours, as concerns about a U.S. slowdown intensify. The unpredictable nature of tariffs, and tariff counter measures, pushing markets lower. Asia emerging market govie/agency bonds are around 2-5bp wider, with the main underperformer being India (+4.5bp).
In terms of newsflow, we believe pressure on Tesla volumes unlikely to have a material impact on Asia emerging market suppliers with China NEV demand robust. Indeed February new energy vehicle (NEV) sales, which include electric and hybrid vehicles, rose +87.1% YoY.
We also had new issue mandates and a new deal in what is a difficult market for issuers. TATA Capital (TATSON) mandated banks to bring a $benchmark long 3y, we estimated FV around T+109bp. In addition, PT Bank Tabungan Negara (BBTNIJ) also mandated banks to bring a 5y $benchmark Tier 2 bond to the market, we estimated FV c. 6%. Finally, Chengdu Airport Xingcheng Investment (SLSCCI) is coming with a 3Y $ deal, and we estimated FV of 5.3% versus IPT of 5.65% area.
Best & Worst Performers (zsprd, bp)
Source: Bloomberg