The Thomson Reuters Index of Asia emerging credit was quoted at 118.97 on a weighted average basis and at 173.30 bps based on simple average. On Friday, the sentiment in the US shifted from 'risk on' to 'risk off.' That's really what's going on in Asia today," said Tim Condon, head of Asian research at ING Bank in Singapore. "The US data on manufacturing and consumer sentiment broadly reinforced the idea that the US is in a jobless recovery and that's a little bit bearish for risky assets."
The Reuters/University of Michigan Surveys of Consumers' preliminary index of sentiment for January fell short of market forecasts, while manufacturing production slipped 0.1 percent, disappointing expectations for a rise. Cash bonds were mostly under pressure, ahead of fresh issues from Vietnam, seen selling $1 billion of 10-year debt, as well as from Chinese developer Evergrande Real Estate Group and Singapore's Temasek Holdings, traders said.
Talks of new global bond sales from South Korea's Export-Import Bank of Korea, Korea Finance Corp and Korea Development Bank were also adding to supply pressure, traders said. Indonesian bonds due in 2020, sold last Tuesday, were quoted at 99.75/100.15 cents on the dollar, down from as high as 100.75 on Friday, traders said. Philippine bonds due in 2020, sold on January 6, traded at 106/106.375 cents on the dollar, compared with Friday's 106.25/106.50, traders said.