HONG KONG, Dec 2 (IFR) - Asian credit markets ended the week
on the back foot, as surging rates in the US had an adverse
impact on investor sentiment.
US 10-year and 30-year Treasury yields had widened another
7bp overnight, with the former ending up about 15bp wider for
Asian credits responded in defensive fashion and the iTraxx
Asia ex-Japan investment-grade index was spotted just over 1.5bp
wider at 125.50/127.50.
ChemChina's recent debut euro bonds were being bid at 99.705
according to Tradeweb, after launching on Wednesday at par.
Chalieco's perpetual non-call 3-year bonds were mostly
unchanged, though they have gained about 1.25 points since last
High-yield names struggled, but there was a bright spot in
Studio City's 2021 bonds, which were trading about a quarter of
a point higher. The bonds were spotted at 103.21, after issuing
at par last week.
In the bank capital segment, South Korean lender Shinhan
Bank's recent Tier 2 issue gained about a tenth of a point
before ending the day only slightly higher.
It was a similarly risk-averse session for equities which
were also bid lower on the day. The Hang Seng was down 1.2% and
Shenzhen by 1.6% in the late afternoon.
Also weighing on sentiment were this weekend's Italian
constitutional referendum and a US jobs report due today,
although the latter is not expected to disappoint.
Asian primary markets are believed to have about a week left
in the year to issue bonds, according to syndicate bankers, as a
rising rate environment is making new deals more complicated to
The US Federal Reserve is widely expected to raise interest
rates on December 14.
(Reporting by Spencer Anderson; editing by Dharsan Singh)