SINGAPORE, Jan 14 (IFR) - Investors sold recently issued
Chinese bank bonds to make room for an expected increase in
offerings of dollar bonds from the sector.
The newly minted 3-year and 5-year bonds of Bank of China
widened 3bp on the break and remained there until the end of the
day, dragging with them the recently printed 3-year bonds of
Bank of Communications, which also finished a couple of basis
"The indigestion of China bank risk is triggering selling on
similar existing issues," wrote a strategist in his afternoon
A weaker tone in the Asian equity markets also took its toll
on the CDS front and the Asia ex-Japan iTraxx IG index ended 1bp
wider at its last quote of 138bp/141bp.
High-beta bonds, such as Philippines' recently issued 2024s
and Indonesia's 2044s, weakened, as well, with the latter quoted
at 101.65 and the former at 100.75.
"Investors were generally better sellers today, as accounts
have been making room for more supply," said a trader in Hong