Asian bonds edged higher on Wednesday as investors focused on recent upbeat US economic data and sought out riskier assets, largely ignoring fresh worries about the fiscal crisis in Greece. South Korea's Hana Bank, which ended a series of investor briefings last week, and Indonesia's PT Lippo Karawaci, which planned to raise $350 million, were expected to issue bonds in the coming sessions to tap strong appetite for corporate issues from the region.
The Asia ex-Japan iTraxx investment-grade index narrowed 3 basis points (bps) to 92/94, traders said. The Thomson Reuters Index of Asia emerging credit, was quoted at 118.80 on a simple average basis and at 112.811 on a weighted average basis. Asian spreads eased even as concerns flared again over debt-laden Greece. Investors dumped Greek assets and the euro slid on Tuesday after reports that Athens was seeking to amend its safety net deal forged with the EU and the IMF last month. Greece has denied the reports. "It's a bit of tiredness. At this point, what the market realises is there will be a bailout package, whether it's going to be from members of EU or from the IMF," said Brayan Lai, credit analyst at Credit Agricole CIB.
Woori Bank's bonds due 2015 narrowed 8 bps to around 198 bps over US Treasuries, while Bank of Baroda's 5-year bonds were 3 bps tighter at 225, traders said. Both bonds were sold on March 29 at 205 bps and 230, respectively. India's ICICI Bank is seen issuing dollar bonds, after Bank of Baroda, traders said. Thailand's 5-year credit default swaps, the cost of insuring its debt against default, was steady at 97/101 bps, as investors shrugged off mounting anti-government protests.
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