AsianBondsOnline's Electronic Newsletter

To read the full report, data and graphs go to http://www.asianbondsonline.adb.org/newsletters/abowdh20130422.pdf?src=newsletter&id=uWidK3KdmgXVUWes9IgIcqKp1miwxx

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News Highlights - Week of 15 - 19 April 2013

Consumer price inflation in Malaysia inched upward to 1.6% y-o-y in March from 1.5% in February, due to increases in food prices. Producer prices in the Republic of Korea fell 2.4% y-o-y in March-the sixth consecutive month of decline-stemming from a 4.1% fall in the price index for manufactured goods.

*     The Republic of Korea's Ministry of Strategy and Finance (MOSF) reported last week that a supplementary budget of KRW17.3 trillion will be utilized to help stimulate the domestic economy in 2013. MOSF also reported that the 2013 supplementary budget calls for a KRW15.8 trillion net increase in issuance of Korea Treasury Bonds (KTBs).

*     In the Republic of Korea, department store sales grew 7.5% y-o-y in March. In contrast, discount store sales contracted 4.4% y-o-y in March, following an 8.9% expansion in February. In Singapore, February's retail sales increased 3.6% month-on-month (m-o-m) on a seasonally adjusted basis, compared with a revised drop of 1.2% in January.

*     Over-the-counter (OTC) bond trading volume in the Republic of Korea grew 20.7% m-o-m to KRW567.1 trillion in March. All investor types recorded increases in their OTC bond trading volume.

*     Bangko Sentral ng Pilipinas' (BSP) Monetary Board last week released new rules to further liberalize the existing foreign exchange regulations which aim to further simplify foreign exchange transactions of the general public.

*     San Miguel Corporation (SMC) plans to raise US$2 billion through issuance of US$-denominated notes, as part of its Medium-Term Note Program to be used for refinancing, working capital, and general corporate requirements. SM Investments Corporation (SMIC) plans to raise more than PHP25 billion via loans and bonds as part of PHP65 billion in capital expenditure for the year.

*     Last week, Kaisa Group Holdings issued a CNH1.8 billion 3-year bond at a coupon rate of 6.875%. Funds took 73% of the bond, followed by private banks at 16%. Also, Future Land issued a CNH1.5 billion 3-year bond at a coupon rate of 9.75%. Sinopoec issued a multitranche US$ bond: a $750-million 3-year tranche, a US$1 billion 1-year tranche, a US$1.25 billion 10-year tranche and a US$500 million 30-year tranche.  The coupon rates are: 1.25%, 1.875%, 3.125% and 4.25%, respectively.

*     Government bond yield fell last week for all tenors in the Republic of Korea, and for most tenors in the PRC; Hong Kong, China; Indonesia; Malaysia; the Philippines; Thailand; and Viet Nam. Yield rose for most tenors in Singapore. Yield spreads between 2- and 10- year maturities widened in Indonesia, Malaysia, Singapore, and Viet Nam, while spreads narrowed in most other emerging East Asian markets.

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