Asian bond spreads flat

Asian bond spreads flat

HONG KONG (Dow Jones): Spreads on benchmark Asian bonds are mostly flat on Wednesday from a week ago, with traders reporting little activity ahead of a long holiday weekend in several major trading centers.

And although Standard & Poor's Corp. cut Indonesia's debt rating Tuesday to SD, signifying selective default, the market was left mostly unmoved, even when the ratings agency reversed its move the next day and restored Indonesia's previous triple-C- plus rating.

Many market participants were left scratching their heads over S&P's flip-flop, but not many saw the need to trade on the news.

The yield on Indonesia's sovereign bond due 2006 narrowed slightly on the week, to 965 basis points over equivalent U.S. Treasurys midday Wednesday, from 980 basis points last week, but is trading wider than the 950 basis points seen Tuesday.

Philippine paper showed even less movement, with the 2008 sovereign tightening by seven basis points on the week, to 383 basis points over Treasurys midday Wednesday.