Rate worries weigh on long bonds

摘要

Asia's primary bond markets stalled in the middle of last week after yields on German Bunds soared and long-dated US Treasury yields rose to their highest since September as signs of an improving US economy turned investors cautious on longer tenors. Korea hydro nuclear power made the only Asian dollar bond issue priced during the first three days of last week, but it drew a modest order book of US$lbn for a US$300m 10-year offering, after cutting its size from initial thoughts of US$500m. "Investors are becoming more nervous about durations, if you look at recent deals," said a senior syndicate manager. "New-issue premiums will have to be higher."