Report Industry Investment Rating No relevant content provided. Core Viewpoints of the Report This week, due to the strong performance of risk assets such as commodities and stocks, the bond market was significantly impacted, leading to a decline in the performance of ultra - long - term credit bonds. The supply of new ultra - long - term credit bonds increased, while the secondary market trading was weak, and the buying willingness decreased. In the future, attention should be paid to the entry rhythm of incremental funds from insurance and wealth management [2][3][4]. Summary by Directory 1. Stock Market Characteristics - Ultra - long - term credit bond yields retreated. This week, affected by the strong performance of risk assets, the yields of existing ultra - long - term credit bonds significantly adjusted, and the yield center rose to 2.1% - 2.3% [2][13]. 2. Primary Issuance Situation - The supply of new ultra - long - term credit bonds increased. This week, the total issuance scale of new ultra - long - term credit bonds was 36.41 billion, significantly higher than that in the first three weeks of July. Some issuers may have issued bonds to reduce financing costs when long - term bond interest rates were relatively low [3][22]. - The average coupon rate of new ultra - long - term industrial bonds rose and remained at a relatively low level of 18.1% since 2024 [3][22]. - The subscription enthusiasm in the primary market declined. Due to the improvement of investors' risk appetite, the subscription enthusiasm for ultra - long - term credit bonds in the primary market dropped significantly [3][22]. 3. Secondary Trading Performance - The ultra - long - term credit bond index dropped sharply. This week, the weekly declines of the 7 - 10 - year and over - 10 - year AA + credit bond indexes reached - 0.73% and 1.31% respectively, erasing the gains in July [4][31]. - The number of long - term bond transactions decreased. Except for 7 - 10 - year industrial bonds, the number of transactions of long - term bonds with other maturities decreased to some extent. However, the trading volume of long - term secondary capital bonds increased significantly, possibly due to the early position - swapping of some institutional investors [4][34]. - The buying willingness weakened. Against the background of the sharp decline in the bond market, the buying willingness for ultra - long - term credit bonds significantly weakened, and the TKN transaction ratio of over - 10 - year credit bonds dropped to 46.5% [4][38]. - High - valuation transactions were dominant. This week, the selling pressure on ultra - long - term credit bonds was significant, mainly in the form of high - valuation transactions, with the valuation deviation of 10 - 20 - year industrial bonds being relatively high [4][38]. - Fund selling increased. Since last week, due to concerns about insufficient spread protection for ultra - long - term credit bonds, funds have significantly adjusted their positions. This week, the net buying ratio of 7 - 30 - year bonds continued to decline, and the total scale of funds selling over - 7 - year ultra - long - term general credit bonds reached 5.77 billion [4][42]. - The spread between active ultra - long - term credit bonds and Treasury bonds widened. From a more microscopic perspective, the spread between active ultra - long - term credit bonds and Treasury bonds of similar maturities widened this week, but the spread of active ultra - long - term credit bonds with a maturity of 20 years and above was still at a relatively low level [5][43].