SINGAPORE, March 16 (IFR) - Asian credits were firmer today as financial markets in the region cheered indications that the US Federal Reserve would adopt a more gradual pace of monetary tightening for this year.
Equities rallied as the Hang Seng Index added 1.77%, while the Shanghai Composite rose 0.86%.
Asian credit spreads narrowed 4bp from yesterday as the iTraxx Asia investment-grade index tightened to 89bp.
"The credit market was stronger this morning and spreads pulled back a little, but the sentiment remained firm," said one high-grade trader.
New issues, which had traded out in the past few days, recouped some losses. CIMB's newly printed 2022s were heard to be at 119bp/117bp over US Treasuries, having come in from the wides of 120bp a day after the notes were priced at 115bp a week ago.
BoCom Financial Leasing's 2020s and 2022s tightened to 137bp/134bp and 144bp/141bp after being priced on Tuesday at 140bp and 150bp, respectively.
Lenovo's 5.275% perpNC5 were steady at 100.375/100.75, still above reoffer at par, but its senior fixed rate 2022s were wider at 185bp/182.5bp.
Trafigura 6.875% perpNC5 were quoted at 99.875/100.125.
Reporting by Kit Yin Boey; editing by Dharsan Singh