Halister News

(Bloomberg) -- Yields on Philippines USD-denominated bonds due March 2041 and January 2040 are rising on supply concerns after the govt announced a new 25-year global bond offering, according to Bong Cabral, trader at Bank of the Philippine Islands in Manila.

• Long-end yields have been rising but even more so for the 2041 bond, Cabral says
• Upward pressure on yields may stall as players trade on speculation of “good demand” for new bond offer
• Yield on 3.95% bond due 2040 rises to 3.717% vs 3.68% Tuesday
  • Yield on 3.7% bond due 2041 is at 3.667% vs 3.632%
• NOTE: Philippines announced offer to sell 2042 bond and switch tender for 14 existing bonds due 2019-2037; initial price talk is ~3.95%

(Bloomberg) -- Govt. may target fiscal deficit of 3.5% of the GDP for FY18, same as the current fiscal year, Indranil Sen Gupta, India economist at Bank of America Merrill Lynch, writes in note.

• Expects govt to target a deficit of 3.5% with the N. K. Singh committee, which was set up by the government to review targets, likely to relax the original 3% target to 3%-3.5%: Gupta
• Is more confident of a 25bps rate cut in Feb and April after latest data releases of CPI, wholesale price index, and industrial production
• RBI rate cut will support INR by attracting foreign investors into the equities market. Foreigners own $400b of the nation’s shares, almost 5 times the value of the bonds held

(Bloomberg) -- Deutsche Bank Wealth Management likes emerging-market USD bonds and favors Asian investment-grade notes over those from Latin America due to better political climate, says Tuan Huynh, Deutsche’s Singapore-based chief investment officer for APAC

• Likes Indonesia, Philippine dollar bonds as well as Chinese names; prefers shorter-dated notes, he says at briefing in city-state on Wednesday.
• Deutsche Wealth forecasts dollar will strengthen, while seeing 10- year UST yield at 3% at end-2017, Christian Nolting, Frankfurt-based global chief investment officer, says at the same briefing
• Nolting also says he doesn’t expect full trade war between the U.S. and China
• Deutsche Wealth expects 2 to 3 Fed rate increases in 2017 and more loosening from BOJ and ECB

(Bloomberg) -- Here’s a roundup of Indian co. debt-rating changes.

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DOWNGRADES

• Colossus Trade
  • Fund-based limits cut to B from B+ at ICRA
  • Cites decline in operating income due to weak market demand
• The Indure
  • Cash credit cut to BB from BBB- at ICRA
  • Cites deterioration in working capital position

UPGRADE

• SKH Metals
  • Term loans raised to BBB- from BB+ at ICRA
  • Cites continued improvement in operating performance