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ASIA CREDIT CLOSE: Asian credit steady, despite sharp eurozone moves
April 24, 2017 / 9:09 AM / 4 months ago

ASIA CREDIT CLOSE: Asian credit steady, despite sharp eurozone moves

SINGAPORE, April 24 (IFR) - Risk appetite improved after Emmanuel Macron and Marine Le Pen took the top two positions in the first round of the French presidential election, with Macron expected to win the runoff, but sharp moves in eurozone yields were not reflected in Asian credit.

Beijing Enterprises' 2022 euro-denominated bonds, the most recent Asian issue in the currency, held steady at a 189bp spread over Bunds, but in absolute yield terms widened 11bp to yield 1.5%, as core eurozone bond yields rose.

Ten-year yields for France and peripheral eurozone countries compressed 8bp-14bp this afternoon.

The Asia ex-Japan iTraxx investment-grade index was unchanged at 95bp/96bp, with only one new dollar issue in the market today.

"We are coming up to a few holidays and there are only going to be a few windows to issue bonds," said a syndicate banker.

Fosun International's 2022 bonds dropped a quarter of a point to 101.275, following its US$600m tap on Friday.

China Zhenshang Bank's 5.45% Additional Tier 1 bonds were quoted at 99.75 bid, according to Tradeweb, ahead of more potential offshore AT1 supply from mid-tier Chinese institutions like Nanyang Commercial Bank and Harbin Bank.

1Malaysia Development's 2022 bonds jumped to a cash price of 109.25, from 108, after unconfirmed reports over the weekend that it had reached a settlement with Abu Dhabi's International Petroleum Investment Company.

Those bonds were issued with a guarantee from IPIC, before the two parties fell out in a dispute over payments.

1MDB's 2023s, which were issued without a guarantee from IPIC, were bid at 93.5.

Reporting by Daniel Stanton; Editing by Vincent Baby

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