The credit spreads of Asia high-grade credit have widened, lagging behind the fall in Treasury yields.
On Wednesday (11/1), the Bank of Japan announced an additional bond purchase plan to control the rise of JGB yields. As a result, the 10-year US Treasury yield fell from 4.92% area to around 4.90% during the Asian session. While all in yields mostly remained stable, the credit spreads of Asia investment-grade bonds widen by about 3bps. Notably, state-owned bond issuers in Korea, such as Korea Electric Power and Korea Gas, as well as Hong Kong investment-grade bonds like those from Hong Kong Airport Authority and Cheung Kong Holdings, performed relatively well in the market.
Important news
On Wednesday, the Bank of Japan announced an additional government bond purchase plan, buying 300 billion yen of 5- to 10-year bonds and 100 billion yen of 3- to 5-year bonds, to control the rise of JGB yields. Yesterday, the Bank of Japan decided to relax its control on 10-year JGB yield, causing it to hit 0.95% earlier today.
Secondary market trading
· Korea Electric Power (KORELE) 5.375% 2026 bonds traded near 5.55%
· Korea Gas (KORGAS) 2.25% 2026 bonds traded near 5.54%
· Hong Kong Airport Authority (HKAA) 4.875% 2033 bonds traded near 5.52%
· Cheung Kong Holdings (CKHH) 4.875% 2033 bonds traded near 6.01%
美債收益率走低，而亞洲高評級債券的信用利差走寬
週三（11/1）日本央行宣布額外債券購買計畫，以控制日債利率上漲，而10年期美債收益率於亞洲時段則是自4.92%走低至4.90%。亞洲地區投資等級債券的收益率多持平，使信用利差走寬約3bps；其中，韓國的國有發債機構如韓國電力、韓國天然氣與香港投資等級機構如香港機場管理局、長江和記實業之債券，表現優於市場。
重大新聞
週三日本央行宣布額外債券購買計畫，將購買 3000 億日元 5 至 10 年期債券，以及 1000 億日元 3 至 5 年期證券，以控制日債利率上漲。昨日日本央行決議放鬆對殖利率的控制，使得今日稍早10年期日債利率一度上揚至0.95％以上。
次級市場交易
- 韓國電力（KORELE） 5.375% 2026年券收益率約5.55%
- 韓國天然氣（KORGAS） 2.25% 2026年券收益率約5.54%
- 香港機場管理局（HKAA） 4.875% 2033年券收益率約5.52%
- 長江和記實業（CKHH） 4.875% 2033年券收益率約6.01%