But the wider offshore bond market has responded positively after assuring comments from China central bank's and coupon payments by two other major developers. An index of China high-yield debt, which is dominated by property developer issuers, has seen spreads tighten from last week's record levels to around 1,484 points on Tuesday. Sunac China, which has a $27.14m payment due on Tuesday, has paid its bondholders, a source with direct knowledge of the matter said. The source was not authorised to speak to media and declined to be identified. A Sunac representative also declined to comment. Kaisa Group, which was the first Chinese firm to default back in 2015 said on Monday it had paid a coupon due October 16 and it plans to transfer funds for a coupon worth $35.85m due on October 22 on Thursday. Its bonds slumped as much as 13c on the dollar, or nearly 25%, on Tuesday, after Moody's Investors Service slashed the firm's credit rating and immediately warned it could be cut again due to default worries.