Asian Dollar Bond Rally Sends Yield Premiums to Record Low

Yield premiums on Asian investment-grade dollar bonds dropped to a record low, joining a wider regional rally in risk assets spurred by easing trade tensions and strong corporate fundamentals.

The credit spreads tightened at least one basis point, traders said on Thursday. That leaves them at around 65.5 basis points, the narrowest ever in a Bloomberg indexgoing back to 2009.

The broader surge in risk appetite, with an Asian stock gauge hitting a four-year high, reflects growing optimism about the global economy after the US-Japan tariff pacttriggered hopes for more deals. Meanwhile, expectations that the Federal Reserve ...