SINGAPORE, March 8 (IFR) - The Asia ex-Japan iTraxx
investment-grade index was flat today at around 94bp/96bp, but
recent trading showed levels widening from a March 2 mid-spread
of 93.25bp, the lowest of the year.
Even after the recent slip, Asian CDS tightened dramatically
from the year's starting level of 121bp. The 10-year US Treasury
yield widened 7bp during the same period.
Asian high yield recovered after a wobble earlier in the
week, as investors bought into weakness.
"The market is pretty resilient and nothing really feels
like panic selling," said a credit trader.
"The high-yield segment is range bound. It feels like there
was a valuation adjustment; credit was running up too tight and
people took profits."
Many high-yield issues from recent weeks have rebounded or
gone higher, and demand is still supportive. "We are still
struggling to find paper to buy," said the trader.
Mongolia's 2024 bonds were flat at a cash price of 107.75
and Bukit Makmur's 2022s were up a quarter of a point at 102.5.
Road King's perpetual bonds, callable in 2022, were flat at
However, this week's new issues saw less support. Noble
Group's new 2022s, callable in 2020, fell nearly half a point to
a cash price of 99.5, and China SCE Property's 2022s were bid at
99.2, having been issued at par.
(Reporting by Daniel Stanton; editing by Dharsan Singh)