HONG KONG, May 15 (IFR) - Long-dated Asian credits rallied this week as investors snatched bargains amid a selloff in 10-year and 30-year US Treasuries.
Cinda Asset Management’s 4.25% 2025s rallied as much as 20bp in the past two weeks, while CNOOC’s 2025s were also bid well.
“When 10-year rates reached the 2.2%-2.3% mark, clients started putting money to work,” said one trader.
A jump in 30-year Treasuries to over the 3% level had Asian investors scrambling to buy maturities in that segment. Temasek’s 2042s and Petronas’ 2045s have tightened 30bp-40bp since the beginning of the month.
“Some of these names were having difficulty finding buyers just last month,” said another trader.
Kaisa Group Holdings bonds were up 3 points on the bid across the curve to around the 67-70 mark amid unconfirmed talk of a higher restructuring offer.
Asia CDS remained unchanged today at 106bp.
Reporting By Frances Yoon