Brexit Jitters Spark Longest Jump in Asia Bond Risk in 10 Months
- Markit iTraxx Asia rises 1.5 basis points to 148 basis points
- Corporate junk bond yields in region increase from 1-year low
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Calm is giving way to caution in Asia’s corporate bond market ahead of Britain’s vote on European Union membership as well as central bank meetings in Japan and the U.S.
The cost of insuring Asian company and sovereign debt against non-payment rose for a fifth day, the longest run of increases in 10 months, according to prices from Westpac Banking Corp. and data provider CMA. The Markit iTraxx Asia index of credit-default swaps advanced 1.5 basis points to 148 basis points, prices from the Australian lender show. As investors shift to haven assets such as government securities, Asian corporate junk note yields have jumped this week, according to a Bank of America Merrill Lynch index.