HONG KONG, March 15 (IFR) - Asian credit markets were stable in thin trading today as most investors stayed on the sidelines ahead of the Federal Reserve's policy statement.
"The overall trading volume was very light, though we saw a bit of selling in 10-year benchmark paper, as some investors wanted to cut duration before the Fed's meeting," said a Hong Kong-based investment-grade trader.
There was also a deceleration in primary market activity with only one offering from Chinese state-owned company Fujian Zhanglong Group in the market today.
The Asia ex-Japan iTraxx IG index was little changed at 93bp/94bp at the time of writing. Bank of China Hong Kong's recent 2020s were bid at a cash price of 99.00, down from 99.06 yesterday.
New issues put in a mixed performance. Bank of Communications Financial Leasing's notes were spotted 2bp-3bp tighter in secondary trading across the three-year, five-year and 10-year tranches, according to traders.
Guorui Properties' newly priced bonds weakened in secondary trading to as low as 99.75 this morning, but pared losses later and were flat in the afternoon.
Reporting by Ina Zhou; editing by Dharsan Singh