Outlook for the week
We view high yield bonds as more favourable given below historical average valuations (Figure 3) providing higher buffer against rising interest rates.
Key economic releases for the week
Last Week Summary
Activity in the Asian primary market picked up last week even as we approach the end of 1H21 after Fed Chair Jerome Powell reassured markets last week. The 10 year US treasury yield inched down week on week. Number of new bond issues doubled to 19 and average order book coverage jumped to 6.7x last week (up from 4.1x previous week). Asian issuers also showed increased preference to issue in EUR, with 3 deals priced last week, totaling EUR2.3bn. US$9.4bn of bonds was issued from 19 deals; breakdown: Investment Grade: US$6.97bn, High Yield: US$1.69bn, Non-Rated: US$813mn