Dollar bond spreads for Asia’s top-rated issuers have narrowed to a record low after a blitz of monetary and fiscal stimulus measures by Chinese policymakers boosted the appeal of the region’s debt.
The average yield premium on the Asian bonds tightened to 74.6 basis points on Wednesday, dropping under the previous low of 75.5 basis points reached in late May, according to data in a Bloomberg index stretching back to 2009. Notes of Chinese issuers are leading the moves over the last month since the People’s Bank of China rolled out steps to support banks’ lending and government leaders pledged forceful measures to bolster a stuttering economy.