Asian credit markets saw less buying interest than yesterday as
new issues posted mixed performances.
"Buying momentum was not as strong as yesterday and we did
not see big movements in the investment-grade sector, but
overall sentiment remained sound, " said a credit trader with a
The iTraxx Asia ex-Japan investment-grade index was 0.14bp
tighter. Citic's new 2022s were 2bp tighter but its new 2027s
were 5bp wider.
New offerings from Chinese property developers had diverging
Xinhu Zhongbao's new 2020s were spotted around 100.5, while
China Jinmao Holdings's new 2022s widened by 5bp with some
blaming the weakness on aggressive pricing.
The high-yield sector was generally weaker as some selling
pressure emerged. "In my view, the rally in Asia's high-yield
sector is unlikely to be sustained and a mild correction is
needed," said a Hong Kong-based credit analyst.
(Reporting by Ina Zhou; Editing by Vincent Baby)