Singapore Telecommunications SingTel returned to the international bond markets for the first time in just over a year on Monday with a capped $500 million deal that entered a market showing very clear signs of indigestion.
Continuing strong supply has run up against secondary market selling pressure, leading Asian investment grade spreads to gap out by up to 12bp on the day.
Sales desks said much of the downward pressure came from brokers marking spreads wider after being hit with bonds from fast money accounts, which have been selling out on the realisation that real money investors are getting full allocations and are not topping...
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