HONG KONG, July 7 (IFR) - Asian credits were slightly weak on Friday amid a spike in global sovereign debt yields on hawkish European Central Bank headlines.
Investment-grade credits, in general, traded 1bp wider, with new issues and financial names changing hands more actively, according to a Hong Kong-based trader.
The trader said the market focus later today is the start of a two-day G20 meeting in Hamburg, Germany, and the release of the US payroll and unemployment data.
The iTraxx Asia IG index widened marginally in being indicated at 89.25bp/90.75bp.
Longfor Properties’ newly priced US$450m 3.875% 5-year bonds traded up sharply. The bonds rose to 100.15 in cash price early today before retreating to around 100, or a yield of 3.85% in afternoon, against reoffer price of 99.425 or reoffer yield of 4.003%.
Sumitomo Mitsui Financial Group’s US$4.25bn notes traded 1bp-6bp tighter across the three tranches with the 10-year piece outperforming the other two.
The US$2bn 2.784% five-year and US$1.75bn 3.364% 10-year fixed-rate notes were priced 85bp and 100bp wide of Treasuries. The US$500m five-year floating-rate note priced at three-month Libor plus 78bp.
Commonwealth Bank of Australia’s US$1.5bn 3.9% 30-year notes were 3bp tighter from reoffer spread of 103bp. The bonds were priced at 99.631 to yield 3.921%.
In the high-yield segment, Fosun International’s 5.25% 2022s rebounded another 0.1 point to 98.20.
The Chinese conglomerate fell as much as 0.7 point Thursday on concerns over the whereabouts of its chairman, but recovered some of the losses later on the day after the company refuted some related rumours.
However, the bonds were still trading lower than Wednesday’s close of 98.50.
Reporting by Carol Chan; editing by Dharsan Singh