Brekkie Bond Wrap

After a weak session during Asian time, rates rebounded as NY came in, leading to a relief rally in stocks. With macro markets stabilizing, buyers emerged in Asian credit.  In the IG space, there was good demand for HK corps as well as internet names like BABA/TENCNT/BIDU which closed 1-2bp tighter.  The Chinese SOE oil sector was more mixed with on the back of oil prices retreating from its highs .  Elsewhere, there was two-way activity across the Noble and Petronas curves.

In HY, after the initial weakening in Chinese property bonds, there was some bottom-fishing to take prices off the lows. India is seeing some selective demand for better quality names, while Indonesia low beta still feels well offered with loose bonds floating around.  Today is the last day of the 30-day grace period for Winsway, the Chinese coking coal company, to make good on the US$13.15m coupon payment on its 2016 bonds that it missed a month ago.  The bonds are wrapped around the $30 level.  All eyes will be on tonight’s April non-farm payroll number (street estimate: +228K).