EM ASIA CREDIT: Medco Energi (MEDCIJ, B1/BB-/BB-) new $ deal
"*IPT: MEDCO ENERGI INTERNASIONAL $BENCHMARK 5NC2 FXD, 9.125%" - BBG
Indonesian oil & gas company, PT Medco Energi Internasional, is coming to the market with a new $benchmark deal from wholly owned subsidiary Medco Cypress Tree. The new notes will be unconditionally and irrevocably guaranteed by the parent. Medco is also in the market tendering its $ '26 and $ '27 bonds.
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AUSSIE BONDS: ACGB Jun-34 (Green) Auction Result
The AOFM sells A$400mn of the 4.25% 21 June 2034 Green Bond:
- Average Yield (%): 4.1725 (prev. 4.4693)
- High Yield (%): 4.1750 (prev. 4.4725)
- Bid/Cover: 4.8875x (prev. 5.1833x)
- Allotted at Highest Accepted Yld as % of Bid at that Yld (%): 51 (prev. 39.5)
- Bidders: 41 (prev. 38), 13 (prev. 12) successful, 6 (prev. 6) allocated in full
CHINA: Central Bank Injects Liquidity via OMO.
- The PBOC issued CNY167.4b of 7-day reverse repo at 1.5% during this morning’s operations.
- Today’s maturities CNY64.9bn
- Net liquidity injection of CNY102.5bn.
- The PBOC monitors and maintains liquidity in the interbank market through the issuance of reverse repo.
- The CFETS Pledged Repo Deposit Institutions 7 Day Weighted Average is at 1.56%, from yesterday’s close of 1.74%
- China’s overnight interbank repo rate is 1.71%, from yesterday’s close of 1.72%.
- China’s 7-day interbank repo rate is 1.86%, from yesterday’s close of 1.75%.
AUSTRALIA DATA: Consumers Worried About Outlook Following US Tariffs
Westpac’s measure of consumer confidence sank 6% m/m in April to 90.1 down from 95.9 in March, which had been boosted by February’s rate cut. Both current conditions and expectations were lower. Households were spooked by US President Trump’s reciprocal tariff announcement which dealt 10% on imports from Australia but a total 54% on China, Australia’s largest export destination. The equity sell off that followed likely also made consumers feel pessimistic given the extent of pension savings.
- Westpac noted that confidence after the April 3 (AEDT) tariff announcement was down 10%. The volatility which has followed will also likely weigh on sentiment.
- The RBA leaving rates on hold on April 1 plus the ongoing election campaign may have also dampened consumer confidence. Westpac observes that the March 25 federal budget was a slight positive.
- There was a drop in all the components of the survey. The economic outlook for the year ahead fell 5.7% and the key “time to buy a major” item -7.3%. Unemployment expectations also deteriorated by 5.1%. Time to buy a dwelling fell 6.5% m/m.
- In terms of backward looking elements, family finances compared to a year ago were down 8.5% to its lowest since 2024’s July 1 tax cuts.
