HONG KONG, April 5 (IFR) - Activity picked up in Asian credit markets on Wednesday as Hong Kong and mainland China resumed trading following a holiday break, but overall spreads stayed almost flat.
“We saw some real money clients buying into 10-year benchmark names today, yet overall spreads did not move much and traded around the level of Monday,” said a Hong Kong-based investment-grade credit trader.
The Asia ex-Japan iTraxx investment-grade index was 0.1bp tighter at 93.5bp/95bp.
Sinopec’s 2026s were spotted around 3bp wider as the state-owned Chinese oil producer was marketing a multi-tranche US dollar bond offering today, noted a trader with a Chinese bank.
CK Hutchison’s recent 2027 bonds were seen 2bp wider at Treasuries plus 117bp, while its 2022s were 1bp wider at Treasuries plus 96bp.
In high yield, China Hongqiao Group’s 2017s and 2018s remained under pressure, dropping by half a point, while Indika Energy’s new 2022s were bid at around reoffer price.
Reporting by Ina Zhou; Editing by Vincent Baby