HONG KONG, March 1 (IFR) - Asian credit markets were mixed on Wednesday as investment grade saw healthy inflows and high yield was relatively weaker.
“We continued to see inflows into the IG space today, probably spurred by bargain-hunting after U.S. Treasuries yields rose overnight,” said a Hong Kong-based IG trader.
The iTraxx Asia ex-Japan investment-grade index was up by 0.5bp.
Citic’s 3.125% 2022s were little changed, bid at 99.95 and China Development Bank’s 2.625% 2022s were bid slightly tighter at 84.90bp over Treasuries, according to Tradeweb.
The action in the high-yield sector was concentrated on the primary market with a raft of new issues this week, while secondary trading was quieter, said another trader.
Two subsidiaries of Chinese conglomerate HNA Group, Grand China Air and Hong Kong Express Airways, tapped US dollar bonds yesterday, raising a total of US$510m.
“The market condition was really good and investors liked short-tenored high-yield issues,” said a banker on Grand China Air’s deal, “so we did not feel that the two deals competed for orders.”
Grand China Air’s new 6.375% 2019s were quoted at 6.24%, according to Tradeweb.
Reporting by Ina Zhou; Editing by Vincent Baby