AsianBondsOnline Newsletter (20 January 2014)

To read the full report, data and graphs go to http://www.asianbondsonline.adb.org/newsletters/abowdh20140120.pdf?src=newsletter&id=uWidK3KdmgXVUWes9IgIcqKp1miwxx

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News Highlights - Week of 13 - 17 January 2014

The Philippines sold US$1.5 billion worth of 10-year US$-denominated bonds at a coupon rate of 4.2% last week. The Hong Kong, China branch of Bank of China sold US$750 million of 3-year US$ bonds with a coupon of 2.125% and US$500 million of 5-year US$ bonds offering a 3.125% coupon. Korea Development Bank issued US$750 million of 3-year US$ floating-rate notes at 62.5 basis points above the 3-month LIBOR and another US$750 million of 10-year US$ fixed-rate bonds carrying a coupon rate of 3.75%. Korea National Oil Corporation (KNOC) priced US$500 million of 5-year US$ bonds at a 2.75% coupon and US$500 million of 10-year US$ bonds at a 4.0% coupon. China Overseas Grand Oceans sold US$400 million of 5-year US$ notes offering a 5.125% coupon and Wharf Finance priced US$400 million of 5-year US$ bonds at a 3.5% coupon last week. 

*     Modern Land Co., a property developer in the People's Republic of China (PRC), priced CNH1.1 billion of 3-year bonds at a coupon rate of 11.0% last week, the second-highest coupon offered next to the 11.25% coupon on Golden Wheel Tiandi's CNH600 million 3-year bond offering in April 2013.  Mongolia-based Trade and Development Bank priced CNH700 million of 3-year bonds at a coupon rate of 10.0%. China Orient Asset Management Corp., through its special purpose vehicle-Starway Assets Enterprises-priced a CNH2.5 billion 3-year bond at a coupon rate of 4.1% last week.  

*     Korea Eximbank sold 10-year bonds at a coupon rate of 4.5% in Taipei,China worth 500 million yuan last week. The bank also issued CNH500 million of 5-year bonds at a coupon rate of 3.625% last week.

*     The PRC's real gross domestic product (GDP) growth rate fell to 7.7% year-on-year (y-o-y) in 4Q13 from 7.8% in 3Q13. Between November and December, the y-o-y growth rate of the PRC's industrial production decreased from 10.0% to 9.7% y-o-y, while retail sales growth declined from 13.7% to 13.6%.

*     The Republic of Korea's merchandise trade surplus stood at US$44.2 billion in 2013, up from a US$28.3 billion surplus in 2012, as overseas shipments increased 2.2% y-o-y and merchandise imports were down 0.8% y-o-y. Singapore's non-oil domestic exports (NODX) rose 6.0% y-o-y in December, a reversal from an 8.9% contraction in November, led by an increase in non-electronic NODX.

*     Japan's current account deficit widened to JPY592.8 billion in November from JPY127.9 billion in October, primarily due to a higher trade deficit and a lower income surplus. In the Philippines, personal remittances from overseas Filipinos rose 9.5% y-o-y in November to reach a record-high US$2.3 billion.

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