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ASIA CREDIT CLOSE: Asian credits stable despite geopolitical worries
April 10, 2017 / 9:15 AM / 8 months ago

ASIA CREDIT CLOSE: Asian credits stable despite geopolitical worries

HONG KONG, April 10 (IFR) - Asian credits were stable on Monday in relatively quiet trade despite increased geopolitical worries.

The iTraxx Asia investment-grade index was indicated at 94bp/96bp, less than 1bp tighter from Friday.

“The US missile strike against Syria and Friday’s mixed US March non-farm payroll report seem had little effect on the markets,” a Hong Kong-based trader said.

The trader said that Sinopec’s four-tranche notes, priced last Wednesday, were actively traded today with the 10-year tranche trading 1bp tighter while other tranches were largely flat.

China Jinmao’s 3.60% 2022s bonds traded 2bp tighter. The Chinese real estate firm said this morning its property contract sales in March increased by 140% year on year to Rmb5.52bn (US$799m).

Bank of China’s bonds were stable after the Chinese lender announced plans to launch a multi-tranche, multi-currency Reg S senior bonds offering in the near term.

In high yield, Yanzhou Coal Mining’s 5.75% US dollar perpetual rose a further 0.1 points to 101.75 while Regal Hotels’ 6.50% US dollar perpetual was stable at 99.375, according to the trader.

Meanwhile, Road King’s 7.95% US dollar perpetual fell 0.125 points to 104.5 on news of its expressway assets spin-off plans. The Hong Kong-listed company has businesses in property development and expressway operations in China.

“The group’s perpetual bonds have a fixed-for-life structure. In the absence of stability of the toll-road business, we view the perpetual bonds as less attractive than previously,” MUFG said.

Reporting by Carol Chan; Editing by Vincent Baby

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