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 today.
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.