HONG KONG, June 20 (IFR) - Asian credit extended their
robust performance after the US Federal Reserve's policy
statement assured financial markets this week that interest
rates would remain near zero.
The Asia ex-Japan IG iTraxx Index was last quoted at 100bp,
trading near a 52-week low of 97.5bp reached on June 9.
Krung Thai Bank's new USD700m Tier 2 bond had tightened 13bp
this morning to 340bp over from a re-offer spread of 353bp,
shrugging off political uncertainty.
Meanwhile, China Hongqiao Group's USD400m offering, which
tightened 50bp from initial guidance to price at a 7.625% yield,
was cited at a cash price of 102, a sign that investors were
becoming increasingly comfortable with high-yield Chinese
Philippine and Indonesian sovereign bonds also gained 1-2
points from their recent lows after the Fed statement said US
unemployment remained elevated, while inflation was still
running below target, suggesting that rates would remain lower
Yields on 10-year US Treasuries had rallied 5bp to 2.61%
after the Fed announcement on Wednesday, but surrendered 3bp the
A majority of Fed officials projected that rates would begin
to rise next year, with the median estimate for rates to be
1.125% at the end of 2015, according to projections submitted
for the meeting.
The Fed pushed ahead with plans to wind down quantitative
easing, reducing monthly purchases to USD35bn beginning July