Primary market slowed as Treasury yields stayed elevated
On Tuesday (9/26), while US treasury climbed to 4.55% area in the morning session, activity in the primary Asia bond market were relatively low. In the secondary market, the Southeast Asian sovereign bonds opened weak with the rising in US treasury yields. Later the day, higher yields attracted inflows, leading to a convergence in price. In the credit bonds sector, despite the weakness in equity markets, there was stronger demand for China IG and Korea IG bonds. Chinese SOEs were actively bidding with spreads tightening by around 2-3bps. The newly issued KOLAHO performed well with spreads narrowing by about 5bps due to real money demand.
Important news
Australia’s banking regulatory authority is seeking feedback on improving the effectiveness of AT1 bonds, stating that certain features of AT1 bonds, as well as the fact that a large portion are held by retail investors, could potentially weaken their effectiveness in absorbing losses when necessary. They have published a detailed discussion paper outlining potential solutions and are assessing the following options:
- Raise or redefine the loss absorption trigger level, allowing for earlier use of these bonds.
- Impose an upper limit on the amount of capital counted as AT1.
- Restrict retail ownership to reduce systemic contagion risks in the financial system.
Primary market
Royal Bank of Canada issued two AUD-denominated senior bonds - Issuer Rating: Moody’s A1 (Stable) / S&P AA- (Stable)
- 5 year fixed-rate bond：SQ ASW + 150bps area
- 5 year floating rate bond：3m BBSW + 150bps area
Secondary market
· KOLAHO 2025 bonds traded near 5.78%
· SINOPE 2025 bonds traded near 5.71%, and 2030 bonds traded around 5.11%
· CNOOC 2025 bonds traded near 5.73%, and 2029 bonds traded around 5.25%
· INDON 2033 bonds traded near 5.45%, and 2053 bonds traded around 5.92%
· PHILIP 2033 bonds traded near 5.42%, and 2048 bonds traded around 5.88%
受美債收益率走高影響，初級市場發行量下降
週二（9/26）亞洲債市的初級市場受美債收益率走高至4.55%的相對高位影響，發行量較低。次級市場方面，早盤東南亞主權債的收益率亦隨美債收益率走高，惟較高的收益率吸引投資買盤，使價格跌幅收斂。信用債方面，市場對中國、韓國的投資等級標的需求較佳，中國國企標的信用利差多收窄約2-3bps，而韓國土地住宅公社新券因實質資金買入，信用利差較發行時收窄約5bps。
重要新聞
澳洲的銀行監管機構正在評估改善AT1債券，並表示AT1一些條件以及大部分由零售投資者持有的情況，可能會削弱AT1債券於必要時吸收損失的效力。他們發表了一份詳細介紹可能解決方案的討論文件，並評估下列改善AT1債券的可能方案： - 提高或重新定義虧損吸收觸發水平，允許更早使用這些債券
- 對計入AT1的資本金數量設定上限
- 限制零售擁有權，以降低金融體系傳染風險
初級市場
加拿大皇家銀行發行兩筆澳幣計價主順位債券 - 發行機構信評：Moody’s A1 (Stable) / S&P AＡ (Stable)
- 5年期固定利率：SQ ASW + 150bps area
- 5年期浮動利率：3m BBSW + 150bps area
次級市場 - 韓國土地住宅公社（KOLAHO）2025年券收益率約5.78%
- 中石化（SINOPE）2025年券收益率約5.71%，2030年券收益率約5.11%
- 中海油（CNOOC）2025年券收益率約5.73%，2029年券收益率約5.25%
- 印尼（INDON）2033年券收益率約5.45%，2048年券收益率約5.92%
- 菲律賓（PHILIP）2033年券收益率約5.42%，2048年券收益率約5.88%