Real Estate Bonds Soared On Lower LPR-Yicai

Real estate bonds issued by some leading developers have largely rebounded following Monday's 15bp reduction in the 5-year Loan Prime Rate, Yicai.com reported. This comes in the wake of widespread declines over the last two months. Some bonds, which were trading at less than half of their issuance price, soared by as much as 47% in a single day, the newspaper said. But many investors still maintain a highly cautious attitude towards real estate bonds, as such a rebound may not be sustainable owing to still sluggish home sales and the ongoing liquidity crisis facing developers, the newspaper noted, citing institutional investors.