HONG KONG, Feb 10 (IFR) - Asian credit markets wrapped up
the first week back from the Lunar New Year holidays with a
decent rally as several new issues fared particularly well.
Trading received a boost from encouraging Chinese trade
data, as well as news that US President Donald Trump had changed
tack and would respect the One China policy.
The iTraxx Asia ex-Japan investment-grade index moved in
over 2bp and was about 6bp tighter since last Friday.
Bank of China's Hong Kong branch, which became the first of
thee mainland's big four lenders to issue this year, saw spreads
on both its 5-year and 3-year bonds tighten just over 3bp.
In the high-yield segment, yields on Future Land's new 2020
bonds were 10bp tighter in early trading before settling closer
to around 8bp tighter.
The bonds were issued to yield 5.125%, tightening 50bp from
guidance, with some analysts putting fair value at 5.25%.
On the sovereign side, shorter-dated credits appeared to
fare better. South Korea's new 2027 bonds saw spreads tighten
3bp, while Philippines 2042 bonds were mostly unchanged, seeing
yields widen as much as 3bp in the earlier part of the session.
(Reporting by Spencer Anderson; editing by Dharsan Singh)