HONG KONG, April 1 (IFR) - Sentiment in Asian credit markets received a lift today from the rally in US equities on Federal Reserve Chairman Yellen’s soothing comments in her speech yesterday.
As a result, both investment-grade and high-yield names firmed up throughout the day.
Indian banks remained in favour, tightening 2bp-4bp, against a backdrop of the Indian rupee strengthening further against the US dollar and hovering around the recent highs of 59.945/59.965 this afternoon.
The order book for Shinhan’s new three-year offering passed the USD1.2bn mark at lunch time, helping to give Korea credits a firm tone.
Chinese real-estate credits were well bid, too. Kaisa Group, KWG Property and Evergrande Real Estate Group also rebounded a further 5bp, although Cogard 23s were at tad softer, as there were some suggestions for a switch to high-yield property names from IG or near-IG names. Wanda 2024s moved to 7.198% today from 7.181% yesterday.
CNOOC 2023s were little changed at around 4.262% from yesterday.
Spreads on sovereign bonds were firmer today. Indonesia’s long end was some 10 cents higher, with the 2044s quoted at 108.88/108.763 today from around 108.79 yesterday.
The Philippines’ 2034s were quoted at 144.473/146.074 today from around 144.54 yesterday.
Traders maintain a slightly positive outlook for the rest of the week.
The Asia ex-Japan IG iTraxx Index was quoted at 124bp at around 4pm, Hong Kong time, around 4bp tighter than Monday.