Credit markets buoyed by rate cut and solid US economic data
Chin Meng Tee, Andrew Wong, Ezien Hoo and Wong Hong Wei • • 3 min read
Asiadollar and Singdollar credit markets remained buoyant in September with tighter spreads and strong issuance, although analysts warn that selectivity and caution may temper momentum ahead. Photo: Bloomberg
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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.
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