Wuxi LGFV constructs offshore bond debut

A new Chinese municipality has entered the international bond markets as fears of Brexit appear to fade.

A Wuxi-based local government-financing vehicle LGFV made its debut the US dollar-denominated bond market on Monday, joining a growing number of Chinese municipal entities in the offshore markets.

The new LGFV deal comes at the time when global investors appear to be getting less nervous about the UK’s referendum on the EU, although bankers believe supply could remain constrained until the vote is cast on Thursday.

Stronger momentum pointing towards a remain vote helped push Asian credit spreads 3bp to 8bp tighter on Monday, while 10-year Treasuries were back out to 1.69% during New York hours on Monday, an 8bp widening day-on-day widening.

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