Morning Commentary: Asian bonds strong at end of week; buying picks up; spreads tighten

By Christine Van Dusen

Atlanta, Feb. 13 – Bonds from Asia put in a strong session on Friday, closing a busy week of buying and spread-tightening for high-grade names.

China-based Sinochem Group’s 2020s outperformed while Export-Import Bank of Korea’s 2025s tightened by a few basis points, a trader said.

“India spreads were selectively tighter,” he said.

Among high-yield names, many property companies from China moved 1/8-point to ½-point higher, but Kaisa Group Holdings Ltd. remained under pressure, moving down 3 points, he said.

The company continues to grapple with a corruption investigation, which has bond investors worried that the property developer could be heading to a default.

“The 2018s to 2020s were trading slightly above the 60s in the morning before bouncing up about 2 points from the lows in the afternoon,” he said. “Kaisa’s 2020s traded in a range of 59 to 64 for the day.”

High-yield sovereigns from Asia, meanwhile, rallied on Treasury moves, and Indonesia’s long end moved up 1 point to 1¼ points. The Philippines’ long end inched ¾-point higher, he said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.