이 기사는 2022년 04월 21일 08:07 thebell 에 표출된 기사입니다.

Mirae Asset Securities has canceled its first US dollar bond sale this year amid a spike in US Treasury yields following the Federal Reserve’s hawkish comments and concerns over the Ukraine war.

On Tuesday morning, Korea time, the Seoul-based firm initially priced 3-year US dollar-denominated notes at 165bp over Treasury for investors from Asia and Europe. The pricing guidance was brought tighter to 155bp later at night. However, the firm ultimately decided to cancel the bond sale as market volatility spiked.

Bond yields soared on hawkish comment from Federal Reserve Bank of St. Louis President James Bullard, who said late on Monday afternoon in the US that he would not rule out a 75bp rate hike. Adding to this, Russia’s attack on Ukraine’s Donbas region dampened investor sentiment. The 10-year Treasury yield, which moves inversely to price, hit 2.93% on Tuesday, the highest since December 2018.

“We decided to delay our US dollar bond offering due to unfavorable market conditions following a spike in market volatility on concerns over rate hikes and the war in Ukraine,” an official at Mirae Asset Securities said. “The timing of the bond sale will be discussed later after considering market conditions.”

It is unlikely that Mirae Asset Securities would be able to return to the market with a US dollar bond offering in the first half of the year, observers said. That’s because it normally takes two months to prepare for a foreign currency-denominated bond sale and the firm also has to start over to get permission from the government.

Mirae Asset Securities is the first issuer to cancel a public offering of Korean paper this year. The firm is rated Baa2 and BBB by Moody’s and S&P Global, respectively.

Citigroup Global Markets Securities, HSBC, Mirae Asset Securities, Standard Chartered were joint bookrunners. (Reporting by Ji-won Kim)