Chinese bonds re-activate supply

Two Chinese credits entered the international bond markets on Thursday with dollar and euro-denominated transactions.

The two deals came on the back of the latest monthly statement from the US Federal Reserve, which suggested a first interest rate hike since 2008 may be on the cards this December after all, although many economists remain sceptical in the absence of positive economic data points.

However, the more hawkish tone led Treasuries to sell off and Asian credit spreads to widen about 3bp on Thursday as sales desks reported some profit-taking from accounts.

But the relatively stable market response encouraged China General Nuclear Power Corp CGNPC...