HONG KONG, March 7 (IFR) - Asian credit markets weakened
slightly on Tuesday as sentiment turned cautious ahead of the
U.S. Fed Reserve's perceived interest rates hike next week.
"Profit-taking was partly to blame for the weak sentiment,
but, in general, investors had turned cautious before a
potential rate hike in the US next week," said a Hong Kong-based
She noted that recent new bonds from Chinese names traded
wider today. ICBC International's new 2020s were spotted 2bp
wider after being priced yesterday at Treasuries plus 110bp.
The Asia ex-Japan iTraxx investment-grade index was 0.2bp
tighter, at 94bp/96bp. China Cinda's recent 2022s were bid at a
cash price of 100.46, off an intraday high of 100.53 this
morning, according to Tradeweb.
Traders said the high-yield sector saw limited activity
today after coming under heavy selling pressure yesterday.
Gome Electrical Appliances' new 2020s were indicated around
reoffer price, while China SCE Property's new 2022s were
slightly wider, according to a high yield trader.
(Reporting by Ina Zhou; editing by Dharsan Singh)