HONG KONG, Feb 18 (IFR) - Asian credit markets ended the
session tighter as market sentiment improved and China-related
The tone changed after news that yet another trust in China
was bailed out and that the Bank of Japan would continue its
record monetary stimulus measures.
The result was a strong rally in credit markets with
investment grade bonds tightening by up 5bp. Indonesia's
long-end was about USD1 higher.
Among specific credits, Agile Property Holdings' new bonds
closed up by about 25 cents, last quoted at 100.25/100.50,
having priced at 99.499 last week. The new sukuk of Export
Import Bank of Malaysia closed some 3bp tighter at 115bp/110bp,
having priced to yield 140bp over US Treasuries.
One trader said there was a short-squeeze in five-year
Chinese CDS that was coming to its peak today. The contract had
been sold as wide as 107bp a couple of weeks ago and today was
closing at 84bp, some 4bp tighter in the day.
"There was a bit of scare about China but the (economic)
numbers have been good," said an analyst.
The move, alongside a rally in other single-name CDS
contracts, helped the Asia ex-Japan iTraxx IG index tighten
about 3bp to close the session quoted at 130bp-131bp, near its
tightest for the year.