HONG KONG, March 21 (IFR) - Asia credit markets were firmer
on Tuesday, supported by buoyant sentiment with new issues
shining in secondary and primary deals remaining active.
"Investor expectations have stabilised after Janet Yellen's
comments last week on the pace of interest rate increases for
this year," said a Hong Kong-based investment-grade credit
"We continued to see investors adding duration - shown by
growing interest in ten-year, thirty-year notes," he said.
He noted that Korea National Oil Corp's US$1.5bn
three-tranche new issue traded tighter on buying interest from
Korean investors. Spread on its 2022 tranche tightened the most
to 92bp from 100bp over Treasuries.
Chinese IG names were in general 1bp-2bp tighter. China
Everbright Bank's 2020s were slightly tighter at 99.68 in cash
The iTraxx Asia ex-Japan investment grade CDS index
tightened 1.8bp to 82.0bp/83.5bp.
Indonesian textile company Sri Rejeki Isman's (Sritex)
US$150m seven-year non-call four issue traded up to 99.75 in
On the other hand, China's onshore bond market suffered from
tightening liquidity before the central bank's quarterly risk
assessment at the end of this month.
The benchmark seven-day repo rate traded in the interbank
market soared to 9% in morning trading, its highest since
January 2014, before falling back to 2.69% by midday.
(Reporting by Ina Zhou; Editing by Vincent Baby)