SINGAPORE, Jan 20 (IFR) - Investment-grade bonds widened
today as investors took profit in the absence of Treasury
trading. With holidays in both Japan and the US, there are no
rate markets today. As a result, investors also used the Asian
corporate bond market to show their dismay at the weak 7.7% GDP
growth rate China unveiled.
The Asia IG ex-Japan iTraxx Index closed 4bp wider at 144bp
today, while the more-liquid IG names were roughly 2bp-3bp wider
in spread terms. Trading was very thin, though.
There was also some profit-taking in high-yield paper on the
announcements of three deals from Chinese property developers
The move curbed gains for investors in the latest
transaction, Yuzhou's new 2019s, which remained around par.
According to one trader, every time the bonds, priced on Friday,
moved higher, they were sold and returned to reoffer.