Credit markets buoyed by rate cut and solid US economic data

Asiadollar credit spreads tightened further in September. Asia IG spreads tightened 2 basis points (bps) m-o-m to 60 bps as of Sept 30, while Asia high-yield spreads tightened 11 bps month-on-month to 321 bps.

Investment-grade spreads remained tight throughout the month, while high-yield spreads tightened further to a new all-time low of 311 bps, supported by sustained strong market sentiment, driven by the Federal Reserve’s quarter-point rate cut at the September FOMC meeting and solid US economic data prints towards the end of September.