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ASIA CREDIT CLOSE: HY bonds stay firm in softer markets
May 4, 2017 / 8:35 AM / 5 months ago

ASIA CREDIT CLOSE: HY bonds stay firm in softer markets

SINGAPORE, May 4 (IFR) - Asian high-yield bonds were holding up as equities in the region eased after a subdued overnight close on Wall Street.

The Hang Seng Index was down 0.2%, while the Shanghai composite retreated 0.26% and the MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.4% in the early afternoon.

Asian credit spreads were flat with the iTraxx Asia investment-grade index at 92bp/93bp.

“High-yield bonds are broadly unchanged and the segment is steady and firm with good two-way flow,” said one trader. “We are starting to see the real-money guys coming in and expect them to continue to pour in funds this week.”

Healthy demand was still being seen today for Indian and Indonesian bonds, continuing yesterday’s drive, which, said Lucror Analytics, came mainly from private banks and fund managers.

Unrated SOCAM Development’s 6.25% bonds due 2020 were still above par at 100.5/101.00, while Saka Energi’s 2024s were quoted at 100.26/100.45, above reoffer at par.

In the high-grade segment, State Grid Corp of China’s bonds were still under water, but slowly grinding out gains from a week ago. Its 2022s were seen at 99.7bp/93.9bp over US Treasuries, 2027s at 121.5bp/119bp and 2047s at 108.3bp/103.1bp.

China Southern Power Grid’s 2022s were flat at 103bp/99bp against reoffer spread of 100bp.

Reporting by Kit Yin Boey; editing by Dharsan Singh

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