Record-Low Spreads on EM Asia High-Grade Debt Show Resilience

Yield premiums on emerging-market Asian investment-grade dollar bonds have tightened to unprecedented levels amid reduced new issuance and China’s economic resilience despite Iran-war disruptions.

The spread on the Asian notes compressed to about 56 basis points on Thursday, the narrowest margin since a Bloomberg index began in 2009. Much of the region was closed for holidays on Friday.