EM ASIA CREDIT: MNI EM Credit Market Update - Asia

Asia EM USD sovereign and agency spreads are trading in a narrow range this morning, between –1bp and +1bp, with markets remaining quiet due to China and South Korea’s national holidays. Gold continues to surge, rising above USD 4,000 per ounce for the first time. In terms of newsflow, overnight reports indicate that the EU plans to impose higher steel tariffs and modify import quotas, raising concerns in South Korea. However, POSCO’s USD bonds have largely shrugged off these developments, trading a few basis points better on the day. The LG India IPO was a success, potentially paving the way for more deals. Additionally, there is a new USD dual-tranche deal from Indonesia, and a possible EUR issue announcement at the London open.