The Thomson Reuters Index of Asia emerging credit was quoted at 123.55 on a weighted average basis and at 176.27 on a simple average. "We saw some recovery on Wall Street overnight, so the market is quite upbeat and the sentiment is positive," said Jonathan Ravelas, chief market strategist at BDO Unibank in Manila.
Philippine sovereign dollar bonds gained for a second day on the government's plan to sell up to $1 billion worth of samurai bonds, easing concerns Manila may once again tap the dollar debt market to fund the budget deficit, traders said. The country's 2020 bond sold this month was a quarter point higher at 106.375/106.625 cents on the dollar, a trader from Manila said.
Indonesian bonds also rebounded, with the newly-issued 2020 traded at 100.75/101 cents on the dollar, up from 100/100.375 on Tuesday, traders said. The market is now waiting for Vietnam's expected $1 billion sale of 10-year bonds, expected to be priced within the week, traders said. Vietnam's 5-year credit default swap was steady at 230/250 bps.