HONG KONG, Sept 6 (IFR) - The Asia credit market was little
changed on Tuesday amid uncertainties over a US interest rate
increase in September and a heavy supply of new bonds.
"The market was a bit quiet today with bid-offer spreads
seemingly wider than last week," said a Hong Kong-based
investment grade trader.
He said investors were reluctant to chase bonds as September
is seen as a sensitive window during which the Fed might raise
Meanwhile, a strong pipeline of new offerings also added
pressure on the secondary market.
A high yield trader noted that Chinese local government
financing vehicles had lost ground today, led by Jiangsu Hanrui.
"Chinese real money investors were selling LGFV bonds," he
said. "Their yields have become less attractive after a strong
The sell-off also came after the Shanghai Stock Exchange
announced last Friday that it had tightened the thresholds for
LGFVs to issue bonds in the stock bourse.
The Asia ex-Japan investment grade iTraxx index was 2bp
tighter at 109bp/111bp. Jiangsu Hanrui's 5.25% 2019 fell to
(Reporting by Ina Zhou; Editing by Vincent Baby)