AsianBondsOnline Newsletter (28 April 2014)

28-Apr-2014 Intellasia | AsianBondsOnline | 11:03 AM Print This Post

Hong Kong, China’s overall consumer prices rose 3.9% year-on-year (y-o-y) in March, the same rate of increase as in February. Japan’s consumer price inflation inched up to 1.6% y-o-y in March from 1.5% in February. Singapore’s consumer price inflation accelerated to 1.2% y-o-y in March from 0.4% in February. In Viet Nam, the inflation rate for the month of April stood at 4.45% y-o-y, up from March’s figure of 4.39%. The Philippines’ Development Budget Coordination Committee maintained its inflation rate targets of 4.0% ±1 percentage point for 2014 and 3.0% ±1 percentage point for 2015 and 2016.

* The Republic of Korea’s real GDP growth rate for 1Q14 stood at 0.9% quarter-on-quarter (q-o-q) and 3.9% y-o-y. Manufacturing output growth in Singapore decelerated to 12.1% y-o-y in March from 13.1% in February.

* The Bank of Thailand’s Monetary Policy Committee decided on 23 April to keep the policy rate steady at 2.00%.

* Japan’s merchandise trade deficit widened to JPY1.4 trillion in March from JPY357 billion a year earlier as y-o-y growth in merchandise imports outpaced that of exports. The Philippines’ merchandise trade deficit narrowed to US$66 million in February from US$967 million a year earlier due to slower y-o-y growth in merchandise imports. Viet Nam recorded a trade surplus in goods worth US$0.7 billion in January-April.

* In the Republic of Korea, local currency (LCY) corporate bond issuance fell 2.5% month-on-month (m-o-m) in March and dropped 7.4% y-o-y in 1Q14.

* CNOOC Limited of the People’s Republic of China (PRC) priced a US$1.25 billion 3-year bond carrying a coupon of 1.625%, a US$2.25 billion 10-year bond with a 4.25% coupon, and a US$500 million 30-year note offering a coupon of 4.875%. Tencent Holdings based in the PRC priced a US$2.0 billion 5-year bond and a US$500 million 3-year bond at coupon rates of 3.375% and 2.0%, respectively. Sinochem of the PRC priced a US$500 million 5-year bond at a coupon rate of 3.25% last week.

*  Woori Bank in the Republic of Korea priced a US$1.0 billion Basel III-compliant 10-year bond at a coupon rate of 4.75% and Korea Expressway priced a US$500 million 3-year bond at a coupon rate of 1.625% last week. Kasikorn Bank based in Thailand priced a US$350 million 5.5-year bond at a coupon rate of 3.50%, while Vista Land and Lifescapes of the Philippines priced a US$225 million 5-year bond at a coupon rate of 7.45% last week. Meanwhile, Indomobil Finance Indonesia raised IDR440 billion from a triple-tranche bond sale last week, consisting of an IDR151 billion 370-day note at a 10.25% coupon, an IDR231 billion 3-year bond at an 11.25% coupon, and an IDR58 billion 4-year bond at a 11.4% coupon.

*  In the PRC last week, the central bank announced cuts to the reserve requirement ratios for rural commercial banks and rural credit cooperative unions. In addition, the government extended tax breaks for small and micro-sized firms. In the Republic of Korea, regulations on the supervision of covered bond issuance took effect on 23 April.

*  Government bond yields fell last week for most tenors in the PRC, Malaysia, Thailand, and Viet Nam. Yields rose for all tenors in the Republic of Korea and for most tenors in Hong Kong, China and Indonesia. Yield movements were mixed in the Philippines and Singapore. Yield spreads between 2- and 10-year tenors widened in Hong Kong, China; the Republic of Korea; Malaysia; Thailand; and Viet Nam, while spreads narrowed in the PRC, Indonesia, and the Philippines.

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