Asian credit spreads were broadly unchanged in a very quiet market as investors waited for the testimony of US Fed chief Ben Bernanke before taking any positions. Stocks in Asia were a touch higher,with Seoul shares closing at a 7-week high,reflecting that sentiments were generally steady. The iTraxx IG Asia index was indicated at 101bp/103bp,flat to where it closed yesterday. The slowdown in new deals,in contrast to the rush of new paper in the last couple of weeks,added to the sluggish tone in the secondary markets. "There is not much pick-up in the secondaries today," said a trader. Even potential new deals from Vedanta Resources,which was out since last evening,and China Central Real Estate,which seized the moment with a new 5NC3 issue late morning,brought no life to the markets. But those bonds took advantage of a benign environment. Because there had been no bad news,conditions were still favourable for riskier bonds,an analyst said. Recently issued Chinese bonds are faring well. China State Grid 2023s tightened to 125bp/123bp,far inside the 130bp reoffer. The 2018s of Bright Food were also better,now indicated at 227bp/224bp against the reoffer of 230bp. Citic Pacific perps continued to find support,having gained to 101.125 from 101.00 yesterday.
