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SINGAPORE, March 28 (IFR) - Asian credits were broadly unchanged in steady trade today as market sentiment remained constructive.
Equities in the region were on the rise, with the Nikkei closing 1.1% higher and the Hang Seng index adding 0.5%.
Asian credit spreads were flat. The iTraxx Asia IG index, which has rolled into series 27, was quoted at around 96bp/98bp, unchanged from yesterday's close.
KNOC's recent issues were just a touch tighter with the 2022s quoted at 95bp/92bp over US Treasuries and the 2027s at 100bp/98bp. The 2022s were still inside reoffer spread of 100bp but the 2027s were wider from the reoffer spread of 92.5bp.
"The 2027s look optically wider but that was due to the broader softness in the secondary market and a function of the tightening in the 10-year US Treasury yields," said one syndicate banker.
When the KNOC priced on March 21, the 10-year Treasury yield was at 2.475% but this has narrowed to around 2.385% quoted today.
In the high-yield segment, Evergrande's 5NC3 were higher at 103.4 compared to yesterday's 103.0, while its 2020s were around 101.85/102.
Reporting by Kit Yin Boey; Editing by Vincent Baby