SINGAPORE, April 27 (IFR) - State Grid of China sold Asia's largest U.S. dollar bond issue of the year yesterday but the notes skidded as market sentiment softened today on concerns over US tax reform.

The US$5bln State Grid bonds widened about 1bp-3bp at the open but gapped out further as the day progressed.

The 2022s, reoffered at 95bp over Treasuries, were seen at 102bp/99bp in mid-afternoon, while the 2027s were at 126bp/124bp after widening from reoffer 120bp. The longer-dated 2047s were 108bp/104bp, out from reoffer of 102.6bp.

The widening came despite some stability returning to the region's credit markets in the afternoon.

"The general mood is stable but while the new issues are seeing more activities, there is not much going on in others," said one trader.

In contrast to the widening in State Grid, the bonds sold a day earlier by State Development & Investment Corporation remained firm.

The 2022s were seen at 109bp/107bp against a reoffer of 115bp, while the 2027s were at 130bp/128bp against reoffer of 135bp.

High-yield issuer Saka Energi was also performing well after pricing a bond due 2024 at 4.45% yesterday. The notes were rallying at 100.40/100.45, underlying the strong momentum seen in the high-yield segment in the last few days.

(Reporting by Kit Yin Boey; Editing by Vincent Baby)