Record Low Spreads for Asian Investment-Grade Dollar Bonds Amid Stimulus

Reported 27 days ago

Asian investment-grade dollar bond spreads have reached a record low of 74.6 basis points following extensive monetary and fiscal stimulus measures in China, enhancing the appeal of the region’s debt. While spreads on Chinese bonds tightened considerably, the overall trend reflects a global decline in risk premiums as central banks, notably in the US and China, adopt supportive policies to bolster growth. Despite potential volatility from upcoming US elections, analysts expect tight spreads to persist, benefiting from lower supply and stronger investor demand.

Source: YAHOO

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