SINGAPORE, March 2 (IFR) - A jump in US Treasury yields
overnight could not hold back Asian credit today, as optimism
over growth prospects outweighed hesitation ahead of a possible
increase in the US rates in two weeks time.
Seven Asian US dollar deals are in the market, and credit
also performed strongly in secondary trading today.
"The theme of the market has changed," said a fund manager.
"In the past, people were afraid of the hike, but now they
welcome it because the theme has changed to growth."
The Asia ex-Japan iTraxx investment-grade index tightened
2bp to 93bp/94bp. Recent five-year issues from Korea Development
Bank and Bank of China tightened 1bp to Treasuries plus 84bp and
Most recent high-yield issues were seen around reoffer, with
Olam International's new long 5-year notes a touch softer at
99.1, from a reoffer price of 99.37.
However, China Aircraft Leasing's new 2022s and 2024s each
dropped a point to a cash price of 99.
Mongolia's sovereign 2022 bonds were bid a quarter of a
point higher, at 93.25 to yield 6.6%, as it markets a new 7-year
issue at 8.25% area. They have gained 7 points in the past
(Reporting by Daniel Stanton; Editing by Vincent Baby)