1. Report Industry Investment Rating No information provided in the text. 2. Core View of the Report - The core contradiction in the bond market may be the diversion of funds from the bond market to the stock market. Attention should be paid to the carry and coupon value of credit bonds. The current bond market is a pessimistic expectation correction market dominated by allocation funds, and may enter a stage of narrowing spreads, but the overall space is still limited. The core contradiction order of the subsequent market is: asset allocation re - balance (stock market diversion) > monetary and fiscal coordination > expectation of price recovery [4]. - For credit bonds, under the support of loose liquidity, the carry strategy of short - and medium - term credit bonds has high certainty, and it is advisable to "increase positions on dips". Under the support of the demand of amortized bond funds, the carry can appropriately extend the duration to 3 - 5 - year medium - and high - grade general credit bonds. Considering that the current credit spreads are at relatively low historical levels, attention should be paid to the coupon value of some varieties and grade sinking. [4] - For secondary perpetual bonds, in the January market, the long - end spreads of secondary perpetual bonds were less compressed, and the catch - up was more obvious in this round of market. In the past two weeks, the allocation power of insurance institutions to secondary perpetual bonds has weakened and even turned into net selling. Considering the valuation and supply - demand changes, it is recommended to be cautious and wait for the opportunity of valuation recovery or supply increase. Also, attention should be paid to the potential participation opportunities of securities company bonds with increasing supply since the beginning of the year. [4] 3. Summary by Relevant Catalogs 3.1 Primary Market - **General Credit Bonds**: The net supply of general credit bonds decreased this period. The issuance of general credit bonds was 139 billion yuan, and the net financing was 36.3 billion yuan, compared with 358.7 billion yuan and 256.5 billion yuan in the previous period respectively. Among them, the issuance of industrial bonds decreased to 76.8 billion yuan, and the net financing decreased to 19.1 billion yuan; the issuance of urban investment bonds decreased to 62.2 billion yuan, and the net financing decreased significantly to 17.2 billion yuan. The weighted issuance term of general credit bonds was 2.65 years, a decrease from the previous period (2.91 years). The credit bond bid - upper limit - coupon rate decreased from 0.42% to 0.41%, and the credit bond subscription multiple increased from 2.67 to 2.85 [4][7][17][21]. - **Bank Secondary Perpetual Bonds**: There was no issuance of bank secondary perpetual bonds this period, and the net financing scale decreased. The net financing of secondary capital bonds was - 200 million yuan, and the net financing of perpetual bonds was - 3 billion yuan. This was the sixth consecutive week of no issuance this year [4][25]. 3.2 Secondary Market - **Yield and Credit Spread**: The yields of credit bonds generally declined, and most credit spreads narrowed. Among general credit bonds, except for the 1/3Y AA - grade, 7Y AA - grade medium - term notes, and 5Y AAA/AA - grade renewable urban investment bonds, the yields mostly declined. The 10Y high - grade urban investment bonds performed the best (the 10Y AAA - grade urban investment bonds decreased by 10.6BP). The yields of all terms and grades of secondary perpetual bonds declined, and the 7Y bank perpetual bonds performed the best (the yields of 7Y secondary perpetual bonds of all qualifications declined by more than 5BP). Most credit spreads narrowed, with the spreads of general credit bonds within 7 years changing mostly within about 2BP or less. The 10Y urban investment bonds/renewable urban investment bonds performed the best (the 10Y AAA - grade urban investment bonds/renewable urban investment bonds decreased by 8.8BP). Except for the slight widening of the credit spread of 3Y AA - grade bank perpetual bonds, the credit spreads of other terms and grades of secondary perpetual bonds all narrowed. The widening varieties were mainly concentrated in 5Y non - public general credit bonds and 1/3/5/7Y weak - quality medium - term notes [4]. - **Turnover Rate**: The turnover rates of general credit bonds and bank secondary perpetual bonds both decreased this week [52]. 3.3 Stock Bond Distribution - The current yields are mostly distributed within 2.4% [6]. - **Industry Bonds**: The average yields of various industries' public - offering industry bonds are presented in a table, showing the distribution by implicit rating and remaining maturity. Most industries' yields are within a relatively low range [106]. - **Urban Investment Bonds**: The average yields of public - offering urban investment bonds in various regions are presented in a table, showing the distribution by implicit rating and remaining maturity. The yields in most regions are within a relatively low range [108]. - **Small and Medium - Sized Bank Secondary Perpetual Bonds**: The average yields of small and medium - sized bank secondary perpetual bonds in various regions are presented in a table, showing the distribution by implicit rating and remaining maturity [110].