SG Bonds Weekly – Week 22 May 31, 2021 518

Outlook for the week

Key economic releases for the week

  • Mon, 31 May: SG: Bank Loans and Advances YoY (10:00AM), SG: Money Supply M2 YoY (10:00AM), CH: Manufacturing PMI (9:00AM), PM Lee Address (4:00PM)
  • Wed, 2 Jun: SG: Purchasing Managers Index (9:00PM), SG: Electronics Sector Index (9:00PM)
  • Thu, 3 Jun: SG: Markit Singapore PMI (8:30AM), US: U.S. Federal Reserve Releases Beige Book (2:00AM)
  • Fri, 4 Jun: SG: Retail Sales, US: Change in Nonfarm Payrolls (8:30PM)


Last Week Summary

Activity in the Asia credit space ramped up, with an 89% increase in number of deals printed versus the previous week. Total weekly deal volume printed increased by US$4.8bn to US$6.9bn. Average initial price guidance tightening also increased 12.2bps to 32.5bps and the average number of active accounts almost doubled, averaging 112.4 accts last week. 10yr US Treasury yields recovered to 1.615%, after dipping mid-week. Singapore reported GDP growth of 1.3% YoY in 1Q21, the highest since the last quarter of 2019. US$6.9bn of bonds was issued from 17 deals. Breakdown: Investment Grade: US$4.01bn, High Yield: US$1.44bn, Non-Rated: US$1.45bn.

  • Hong Kong listed miniaturized components developer and producer AAC Technologies printed a US$650mn dual-tranche senior bond deal. The 5yr tranche was priced at T+185bps while the 10Y tranche was priced at T+225bps, tightening 40bps and 45bps respectively from initial price guidance level. The Baa2 rated issuance received strong investor demand as final orderbooks average 6.2x book coverage.
  • Lendlease Global Commercial Real Estate Investment Trust issued S$200mn in perpetual securities at 4.20% per annum, for the financing of potential investment opportunities among several other uses.
  • OUE Commercial Real Estate Investment Trust priced an offering of S$150mn of 3.95% notes due 2026, to be guaranteed by Reit trustee DBS Trustee.
  • 2 outstanding mandates remain from last two weeks.


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