Wednesday, April 8, 2015

AsianBondsOnline Newsletter (6 April 2015)


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News Highlights - Week of 30 March - 3 April 2015

Consumer price inflation in Indonesia stood at 6.4% year-on-year (y-o-y) in March, up slightly from 6.3% y-o-y in February, amid relatively high price hikes in processed food and utilities. In the Republic of Korea, consumer price inflation eased to 0.4% y-o-y in March from 0.5% y-o-y in February: four out of 12 expenditure categories in the Consumer Price Index (CPI) recorded price decreases in March, led by transport. In Thailand, the CPI fell 0.6% y-o-y in March, after posting a 0.5% y-o-y drop in February, due to falling transportation costs.

*     The Republic of Korea’s merchandise trade surplus reached a record monthly high of US$8.4 billion in March. Exports of goods fell 4.2% y-o-y to US$47.0 billion and merchandise imports fell 15.3% y-o-y to US$38.6 billion in March. Meanwhile, the Republic of Korea’s current account surplus stood at US$6.4 billion in February, lower than the surplus of US$6.6 billion in January, but higher than the surplus of US$4.5 billion in February 2014, according to The Bank of Korea data. 

*     Thailand’s current account surplus amounted to US$3.5 billion in February, higher than the previous month’s surplus of US$2.5 billion, but lower than the surplus of US$4.2 billion in February 2014, according to Bank of Thailand data.

*     Manufacturing activity in the People’s Republic of China (PRC) rebounded in March as the Purchasing Managers Index (PMI) for the manufacturing sector inched up to 50.1 from 49.9 in February. Meanwhile, Singapore’s PMI stood at 49.6 in March, reflecting a contraction in its manufacturing sector. A PMI above 50 reflects an expansion in manufacturing activity.

*     Industrial production in Japan contracted 2.6% y-o-y and 3.4% month-on-month (m-o-m) in February, based on data from the Ministry of Economy, Trade, and Industry. In the Republic of Korea, industrial production fell 4.7% y-o-y, but grew 2.6% m-o-m in February, according to Statistics Korea. Manufacturing production in Thailand expanded 3.6% y-o-y and 1.7% m-o-m in February, per data from Bank of Thailand.

*     Hong Kong Telecommunications (HKT) priced a US$500 million 10-year bond at a coupon rate of 3.625% last week. The bond was rated Baa2 by Moody’s Investor Service and BBB by Standard and Poor’s. Meanwhile, Grand China Air (Hong Kong) priced a US$300 million 2-year bond at a coupon rate of 5.5% last week.

*     Siam Cement in Thailand raised THB30 billion from a dual-tranche debenture sale last week: a THB15 billion 3-year debenture carrying a coupon rate of 3.75% and a THB15 billion 4-year debenture at 3.9%. The bonds were rated A(tha) by Fitch Ratings (Thailand). Land and Houses in Thailand issued a THB7 billion 3-year debenture at a coupon rate of 2.81% and a THB1 billion 5-year debenture at 3.31% last week. The bonds were rated A+ by TRIS Rating.

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

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