Core Insights - MarketAxess Holdings Inc. (MKTX) reported Q2 2025 earnings per share of $2, exceeding the Zacks Consensus Estimate by 3.1%, and up from $1.72 a year ago [1][10] - Total revenues increased by 11% year over year to $219.5 million, also surpassing the consensus mark by 0.6% [1][10] - The strong performance was driven by record-high trading volumes amid heightened market volatility, although elevated expenses partially offset this growth [2][10] Financial Performance - Commission revenues rose 12% year over year to $191.8 million, beating the Zacks Consensus Estimate by 1.3% [4] - Information services revenues were $13.1 million, a 4% year-over-year increase, but missed the consensus mark by 2% [4] - Total expenses increased by 10% year over year to $127.6 million, primarily due to higher employee compensation, technology, and G&A costs [5][10] - Net income grew 10% year over year to $71.2 million, exceeding estimates, while the net income margin decreased by 50 basis points to 32.4% [5] Trading Volumes - High-grade trading volume reached $481.1 billion, a 19% year-over-year increase, surpassing the consensus estimate by 3.8% [6] - High-yield trading volume increased by 25% year over year to $104.9 billion, with an average daily volume (ADV) rise of 27% to $1.7 billion [7] - Total credit trading volume grew 20% year over year to $1.04 trillion, with total credit ADV rising 22% to $16.8 billion [8] Balance Sheet and Cash Flow - As of June 30, 2025, cash and cash equivalents were $462.8 million, down from $544.5 million at the end of 2024 [9] - Total assets increased to $1.97 billion from $1.79 billion at the end of 2024 [9] - Net cash from operations was $103.7 million, down from $118.8 million a year ago, while free cash flow increased to $113 million from $97.6 million [12] Capital Deployment - MarketAxess repurchased shares worth $36.7 million in the quarter, totaling $80 million year-to-date, with $145 million remaining under the repurchase program [13] - A quarterly cash dividend of 76 cents per share was declared [13] Strategic Outlook - The company aims to execute its long-term growth strategy through product innovation and strategic talent acquisition, focusing on expanding block trading solutions and enhancing portfolio trading capabilities [14]

1. Report Industry Investment Rating No relevant content provided. 2. Report's Core View - The resumption of VAT collection on treasury bonds, local government bonds, and financial bonds is expected to have a neutral impact on the bond market. The relatively low VAT rate and its application only to interest income limit the direct impact on the bond market [3][5][6]. 3. Summary by Directory 3.1 This Week's Institutional Behavior Review - **Yield Curve**: Yields on treasury bonds and China Development Bank bonds generally declined. Treasury bond yields decreased across various tenors, with the 1Y yield down 1bp, 3Y down 3bp, etc. China Development Bank bond yields also dropped, such as the 1Y yield down about 2bp and 3Y down 4bp [18]. - **Term Spread**: The spread between treasury bonds and China Development Bank bonds increased. For treasury bonds, the short - term spread was differentiated, and the long - term spread narrowed. For China Development Bank bonds, the spread increased, and the term spread generally narrowed [19][20][21]. 3.2 Bond Market Leverage and Funding Situation - **Leverage Ratio**: It dropped to 107.46%. From July 28 to August 1, 2025, the leverage ratio fluctuated upward during the week. As of August 1, it was about 107.46%, up 0.7pct from the previous Friday and 0.66pct from Monday [22]. - **Pledged Repurchase**: The average daily turnover of pledged repurchase this week was 6.6 trillion yuan, with an average daily overnight proportion of 86.77%. The average daily turnover decreased by 1.05 trillion yuan compared to last week [27]. - **Funding Situation**: Bank funding supply fluctuated upward. Large state - owned banks and policy banks had a net funding supply of 4.38 trillion yuan on August 1. The main fund - borrowing party was funds, and the money - market fund's funding supply fluctuated downward [33]. 3.3 Duration of Medium - and Long - Term Bond Funds - **Median Duration**: It dropped to 2.83 years. On August 1, the median duration (ex - leverage) was 2.83 years, down 0.05 years from the previous Friday; the median duration (including leverage) was 3.18 years, down 0.06 years from the previous Friday [47]. - **Interest - Rate Bond Fund Duration**: It dropped to 3.88 years. The median duration of interest - rate bond funds (including leverage) decreased to 3.88 years, down 0.06 years from the previous Friday [49][52]. 3.4 Category Strategy Comparison - **China - US Yield Spread**: The short - term spread narrowed, and the long - term spread widened. The 1Y spread narrowed by 1bp, 2Y by 4bp, etc., while the 7Y spread widened by 2bp, 10Y by about 4bp, and 30Y by 5bp [54]. - **Implied Tax Rate**: It generally narrowed. As of August 1, the 1Y spread between China Development Bank bonds and treasury bonds narrowed by 2bp, 3Y by about 1bp, etc. [57]. 3.5 Bond Lending Balance Changes - On August 1, the lending concentration of active and second - active 10Y treasury bonds, active 10Y China Development Bank bonds, and active 30Y treasury bonds trended upward, while that of the second - active 10Y China Development Bank bonds trended downward. All institutions showed an upward trend [58].

Core Viewpoint - The report indicates a decrease in the interbank currency market's trading volume and balance in the first half of 2025, with rising repo rates and a reduction in the average net lending balance of large commercial banks. However, bond issuance and net financing reached new highs, with an increase in bond trading and a flattening of the yield curve for government bonds [1]. Group 1: Currency Market Performance - The total trading volume in the currency market for the first half of the year was 78.62 trillion yuan, a decrease of 16.1% compared to the previous period, with an average daily transaction of 6.6 trillion yuan, down 10.5% [2][4]. - The average daily balance in the currency market decreased by 4%, with large commercial banks' average net lending balance dropping by 13%, while money market funds saw a 6% increase in their average net lending balance [6][8]. Group 2: Monetary Policy and Interest Rates - The central bank implemented a moderately loose monetary policy, leading to an overall increase in funding rates and greater volatility. The net injection of liquidity through various tools amounted to 36.863 trillion yuan in the first half of the year [4][5]. - The weighted average of DR001 and R001 increased by 5 basis points to 1.62% and 1.73%, respectively, while DR007 saw a slight increase of 4 basis points to 1.78% [5]. Group 3: Bond Market Developments - A total of 27.1 trillion yuan in bonds were issued in the first half of the year, marking a 3.8% increase from the previous period and a 24.1% year-on-year increase. Net financing reached 10.5 trillion yuan, up 3.3% from the previous period [9]. - The trading volume in the cash bond market increased by 11.3% compared to the previous period, with a total of 184 trillion yuan traded [10]. Group 4: Yield Curve and Credit Spreads - Government bond yields initially rose and then fell, with the 10-year government bond yield fluctuating between 1.6% and 1.9%. The yield curve flattened, and the credit spread narrowed for most bonds [11]. - The yield curve for interest rate swaps shifted upward, with an increase in average daily transaction volume by 22.7% in the first half of the year [12].

Group 1 - The core viewpoint of the articles highlights China Foreign Trade Trust's outstanding performance in bond trading, ESG practices, and comprehensive competitiveness, leading to three significant industry honors in 2025, establishing it as a benchmark enterprise in the trust industry [1] Group 2 - In the bond market, China Foreign Trade Trust has been recognized for three consecutive years in both Shenzhen and Shanghai Stock Exchanges' bond trading rankings, achieving a trading scale of approximately 130 billion yuan in 2024 and holding a bond inventory of 70 billion yuan as of March 2025, maintaining its position in the top tier of the trust industry [3] Group 3 - The company has innovated a dual-platform model of "charity trust + foundation," winning the "Golden Bee ESG Competitiveness - Rural Revitalization Award" as the only awarded trust institution, with a cumulative charitable trust establishment of 55 cases and a total entrusted scale exceeding 150 million yuan [4] Group 4 - China Foreign Trade Trust has won the "Golden Award" for five consecutive years, receiving accolades for "Outstanding Comprehensive Competitiveness Trust Company" and "Outstanding Trust Wealth Brand," with a focus on asset service trusts, asset management trusts, and innovative business in wealth management [5] Group 5 - Looking ahead, the company aims to continue serving national strategies, deepening the advantages of the trust system, and innovating in bond trading, ESG practices, and wealth management to inject financial vitality into the real economy and contribute to rural revitalization [6]

Group 1: Core Insights - The report indicates a significant increase in net buying of 7-10 year long-term bonds and bonds over 10 years, with weekly net buying intensity reaching the second highest and highest levels of the year respectively [1] - The overall funding market has warmed up, with both net inflow and outflow amounts rising, and an increase in the leverage ratio in the interbank bond market [2] - The secondary market shows improved activity, particularly in ultra-long bonds, with a rise in turnover rates for 30-year government bonds and an increase in average duration for medium to long-term pure bond funds [3] Group 2: Market Dynamics - In the primary market, there was a noticeable "marginal" sentiment, with an increase in the issuance of government bonds and a rise in the bid-to-cover ratio for government bonds, while the ratio for policy financial bonds decreased [2] - Major institutional behaviors indicate that funds are aggressively allocating to long-term and ultra-long-term bonds, while rural commercial banks are selling off across all maturities, particularly in the 7-10 year and over 10-year segments [3] - The scale of wealth management products in June did not show the typical seasonal decline, with a slight overall decrease in the week of June 15, while fund sizes increased significantly compared to previous months [4]

Group 1 - The core viewpoint of the article emphasizes the rapid growth of China's bond market, projected to exceed 180 trillion yuan by 2025, solidifying its position as the second-largest bond market globally [1] - The article highlights the challenges faced by new investors in navigating the complex trading mechanisms and market volatility, leading to hesitation in making investment decisions [1] Group 2 - The "Miaoxiang Cup" bond simulation trading competition is introduced, aimed at providing participants with a real trading experience without entry barriers, open to anyone interested in bond trading [3][4] - The competition features real market quotes and a T+1 settlement mechanism, allowing participants to engage in realistic trading strategies and decision-making [4] - Participants can unlock various benefits, including access to a financial terminal, customized gifts, and entry into elite trading communities, enhancing their market insights [5] Group 3 - The competition includes engaging features such as daily predictions on 10Y government bond movements, AI strategy assistance, and a risk warning system to help participants avoid pitfalls [6] - Detailed trading rules are provided, including an initial capital of 300 million yuan, trading hours, and the types of bonds available for trading [7]