Sentiment in Asia bond market improved as 10-year Treasury yield fell from 4.8%
With the dovish remarks made by the Fed officials overnight, the 10-year Treasury yield dropped significantly by more than 10bps from 4.8% area after the opening of the Asian session on Tuesday (10/10). The market risk appetite improved, but there was still no important dollar bond issuance in the primary market. In the secondary market, although the trading volume was not large, the credit spreads of Asia IG bonds mostly narrowed by about 2-4bps as the US Treasury yields fell. Among them, the credit spreads of Korea, Japan, and Singapore IG bonds mostly narrowed by about 1-3bps, while the credit spreads of Hong Kong IG bonds narrowed by about 2-4bps, thanks to increased buying orders from real money investors and private bank clients seeking higher quality bonds.
Important news
Country Garden announced on Tuesday (10/10) at the Hong Kong Stock Exchange that it expects to be unable to meet its obligations to pay all the offshore debts on time, facing the risk of potential default. As of now, the company has a total of 15 outstanding USD bonds with a total principal amount of around 9.3 billion USD.
Country Garden, after completing the extension of 9 domestic bonds in September, is now rapidly initiating the restructuring of its overseas debt. The company said that it will work actively with its advisers to pursue the offshore debt management measures. With due respect to the existing legal status and payment orders of all creditors, the company aims to fairly and justly formulate a holistic solution to achieve a long-term and sustainable capital structure.
In general, compared to extending domestic debt, restructuring overseas debt is typically more challenging. The company will continue to cooperate and communicate with all creditors to reach a feasible solution as soon as possible.
Secondary Market
• HKAA 2.625 2051 bond traded near 5.6%
• HKINTL 2.325 2051 bond traded near 5.35%
10年期美債收益率自4.8%回落，亞洲債市的風險情緒改善
受到前一日聯準會官員的鴿派言論影響，美債收益率於週二（10/10）亞洲時間開盤後自4.8%附近的高點顯著回落10bps以上，使市場風險情緒改善，惟初級市場仍無重要美元券發行。次級市場方面，整體交易量雖不大，但隨美債收益率走低，亞洲投資等級標的信用利差多收窄約2-4bps，其中韓國、日本、新加坡投資等級標的信用利差多收窄約1-3bps，香港投資等級標的則因實質資金投資人與私人銀行客戶對較高品質債券的買盤回籠，信用利差多收窄約2-4bps。
重要新聞
碧桂園週二（10/10）於港交所公告指出，預期將無法及時履行所有境外債務的償付義務，面臨潛在的違約風險。截至目前，公司流通在外的美元債券共有 15 支，存續本金約 93 億美元。
碧桂園於９月完成９檔境內債券展期後，正快速啟動境外債務重整工作。公司表示，將與顧問積極推進境外債務管理措施，在尊重所有債權人現有法律地位和法律償付順序的前提下，公平公正地制定整體解決方案來實現長期、可持續的資本結構。
一般來說，相較於境內債務展期，境外債務重整的難度通常更高。公司計劃持續和所有債權人合作並進行對話，以儘快達成可行的解決方案。
次級市場
• 香港機場管理局（HKAA）2.625 2051年券收益率約5.6%
• 香港特別行政區政府（HKINTL）2.325 2051年券收益率約5.35％