This benign backdrop should allow pending supply from the likes of Indonesia, China's Winsway, Hong Kong's Citic Pacific and Korea's Posco. Barring renewed nuclear scares in Japan and the critical escalation of conflict in Libya, regional players see the issuance environment as extremely stable.
The sovereign CDS complex is around 1bp tighter. Korea is at 103bp/106bp, unchanged, while China at 73bp/76bp, Thailand at 116bp/121bp, Malaysia at 76bp/79bp and the Philippines at 134bp/138bp are all in 1bp.
Yesterday's new USD350m 5-year NC 3 from KWG Property was bid up at 100.3 this morning, or 30 cents above reoffer while Yanlord slipped 5 cents on the bid to 99.95. Bucking the trend were the new Philippines 2026s which were bid at 99, or 50 cents off reoffer. The Philippines offshore cash curve was also weaker at its long end, with the RoP due 2034s off a quarter at 105.5 bid.