Bank of China bonds widen amid Greece jitters

Bank of China’s Hong Kong arm priced a $750 million five-year senior bond early Tuesday morning at five-year Treasuries plus 280bp, 10bp inside the initial guidance, which was in the area of Treasuries plus 290bp. 

The bonds traded down in the secondary markets later that morning as the mood in the credit market had turned decidedly negative overnight after news emerged that Greece would hold a referendum to vote on the comprehensive debt package agreed on by European leaders last week a move that could jeopardise the bailout. European equities closed about 2% lower on Monday night while Dow futures fell some 100 points when Bank of China Hong...