HONG KONG, March 14 (IFR) - Asian credits were tighter on the day with positive risk sentiment globally but Chinese high yield bonds gave up gains after the Chinese Premier doused hopes of easing in the property sector.
The Asia ex-Japan IG index was at 143bp/147bp, tighter than Tuesday’s close of 152bp/154. The index finally broke through its range of 150bp-160bp closing below 150bp for the first time since end January.
“The IG has had a very strong run, it’s about 10bp tighter across the board with the Hong Kong property sector performing very well,” said a Hong Kong-based credit trader.
Citic Pacific’s 2017 bonds were at 100.65/100.80 cents on a dollar after pricing at par earlier this week.
However China’s high yield bonds struggled to retain their gains. “High yield bonds rallied after the huge response received by Agile overnight but the sector gave up gains after more issues were announced and after comments from the Chinese premier,” said another Hong Kong based credit trader.
Agile Property’s 2017 bonds were trading at 100.30/100.40 cents on a dollar after rallying to 101.5 cents on a dollar in early trading. They priced at 99.903 overnight.