Report Investment Rating - The investment rating for the industry is "Underperform" [1][6] Core Viewpoints - Inflation cooling and trade easing open up downward space for US Treasury yields. The September CPI data in the US was lower than expected, with core inflation slowing down, which boosted expectations of interest rate cuts. The market's expectation of a 25 - basis - point interest rate cut in October reached 98.9%, and the probability of another cut in December was 95.3% [1] - The October PMI data in the US exceeded expectations, indicating economic resilience. The Markit manufacturing, services, and composite PMIs all improved compared to September and were better than expected, showing strong economic growth in the early fourth quarter [2] - China and the US reached a framework agreement on issues such as tariffs. The high - level economic and trade consultations effectively eased recent trade tensions and set a constructive tone for the upcoming APEC meeting between the two leaders [3] - Under the positive factors of "inflation cooling + dovish Fed + easing trade tensions", the downward space for US Treasury yields is further opened. It is recommended to maintain medium - to - short - term (2 - 5 years) US Treasuries as the core allocation, and investors with higher risk tolerance can moderately extend the duration to 5 years [4] Summary by Directory US Macroeconomic and Liquidity - The September CPI data showed that overall CPI rose 3% year - on - year, slightly lower than the expected 3.1%, and core CPI also increased by 3% year - on - year, lower than the expected 3.1%. The market's expectation of interest rate cuts in October and December increased significantly [1] - The October PMI data showed that the manufacturing, services, and composite PMIs all improved compared to September and were above the 50 boom - bust line, indicating strong economic growth at the beginning of the fourth quarter [2] Exchange Rate - Not covered in the provided summary content Chinese - funded US Dollar Bonds - The report shows the trends of returns, yields, and spreads of Chinese - funded US dollar bonds since 2023, classified by level and industry [75] Rating Actions - In the past two weeks, the three major international rating agencies carried out 10 rating actions on Chinese - funded US dollar bond issuers, including 5 rating revocations, 1 initial rating, 3 rating downgrades, and 1 rating upgrade [76]