Demand for dollar bonds from China and the Asia ex-Japan region slowed to its lowest in two years with Bloomberg noting that the woes on China Evergrande and the regulatory crackdowns dampening appetite. Bid-to-cover (Term of the Day, explained below) stood at 4x for Chinese dollar bonds and 3.8x for the Asia ex-Japan region in July vs. 7.3x and 5.2x in June. Bloomberg notes, “Last month’s dollar-bond subscription ratios in both China and across Asia were the lowest since August 2019, falling below the weakened demand seen during March 2020’s pandemic-fueled global market tumult.” Despite this backdrop, first-time borrowers in China saw 12 new deals in July as compared to a monthly average of eight this year, being able to secure demand for their bonds.

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