Group 1 - The simulated portfolio returns have generally rebounded this week, with most credit style portfolios outperforming their corresponding interest rate styles. The weekly returns for secondary capital bonds and long-term strategies were both 0.05%, while the leading credit style strategies, perpetual bond duration and perpetual bond down strategies, achieved returns of 0.13% and 0.12% respectively [2][10][16] - The average weekly return for the credit style certificate of deposit (CD) heavy portfolio increased by 4 basis points to 0.04%, remaining at a relatively low level since October. The city investment heavy portfolio's average weekly return slightly rose to 0.03%, which is still lower than the CD strategy [2][17] - The main source of returns this week was the increase in coupon rates across various strategy portfolios, with investment returns primarily driven by coupon income. The coupon contribution was distributed between 30% to 100%, with the secondary bond bullet strategy contributing 60% of its returns from capital gains [3][26] Group 2 - Over the past four weeks, the duration city investment strategy has outperformed the financial bond heavy strategy. The cumulative excess returns for the city investment strategies were 17.9 basis points for the bullet strategy, 16.8 basis points for the duration strategy, and 3.6 basis points for the broker bond down strategy [4][30] - In terms of strategy duration, the excess returns for the medium to long-term city investment duration strategy have turned negative. The short-term CD strategy has shown negative excess returns, while the city investment down strategy's excess return increased to 2.7 basis points [4][32] - The cumulative comprehensive returns for the main credit style strategies this year have been led by city investment short-term down, city investment duration, and city investment bullet strategies, achieving returns of 1.56%, 1.34%, and 1.3% respectively [10][11]

Group 1: Quantitative Credit Strategy - The urban investment bond duration strategy balances returns and defensiveness well, with cumulative excess returns for perpetual bonds, secondary bonds, and urban investment barbell combinations reaching 18.5bp, 14.7bp, and 5.1bp respectively [2][12] - Most medium to long-term strategies have shown excess returns in the past month, indicating potential profit from recent upward trends, although the likelihood of volatility corrections is higher compared to other strategies [2][12] Group 2: Duration Tracking - As of October 24, 2025, the weighted average transaction durations for urban investment bonds and industrial bonds are 1.98 years and 2.42 years, respectively, returning to over 80% of the high historical percentile since 2021 [3][15] - The weighted average transaction durations for secondary capital bonds, perpetual bonds, and general commercial bank bonds are 4.01 years, 3.46 years, and 1.83 years, with secondary capital bonds showing a relatively high duration percentile [3][15] Group 3: Yield Heatmap - As of October 27, 2025, the valuation yields and spreads of private enterprise industrial bonds and real estate bonds are generally higher than other varieties [4][17] - In the non-financial and non-real estate industrial bonds, yields have generally declined, with the average drop exceeding 6bp for 2-5 year state-owned enterprise private perpetual bonds [4][18] Group 4: Science and Technology Innovation Bonds - The issuance of science and technology innovation bonds reached a year-to-date high, with a total issuance scale of 699.4 billion yuan from October 20 to October 24, 2025, including 421.4 billion yuan from the exchange [5][20] - The subscription enthusiasm for new bonds has increased, with several science and technology bonds being oversubscribed by more than three times, indicating strong institutional demand for quality science and technology bonds [5][20] Group 5: Local Government Bonds - From October 20 to October 24, 2025, local government bonds issued totaled 247.2 billion yuan, including 112.4 billion yuan of new special bonds and 65.1 billion yuan of refinancing special bonds [6][23] - The main investment areas for special bond funds are "special new special bonds" and "ordinary/project income," with 73 billion yuan of special refinancing special bonds issued in October, accounting for 9.3% of the month's local bond issuance [6][23]

Report Summary 1. Investment Rating No investment rating for the industry is provided in the report. 2. Core Viewpoints - This week, the returns of the simulated portfolios generally declined, with the credit - style portfolio returns mostly higher than the interest - rate style. The investment in Pu - xin bonds (普信债) was advantageous, and the capital gains of the urban investment bond heavy - position strategy contributed significantly to the returns [2][3]. - In the past four weeks, the urban investment bond duration strategy balanced returns and defensiveness well. The excess returns of medium - long - term and ultra - long - term strategies were significantly compressed [4]. 3. Summary by Directory 3.1 Combination Strategy Return Tracking - **Combination Weekly Return Overview**: As of October 24, the cumulative returns of the interest - rate style and credit - style portfolios this year have been continuously lagging behind the same period in the past two years. Among the main credit - style portfolios, the urban investment short - end sinking, urban investment bullet - type, and certificate of deposit bullet - type portfolios had leading cumulative comprehensive returns of 1.26%, 0.86%, and 0.84% respectively. This week, the returns of the simulated portfolios generally declined, with the credit - style portfolio returns mostly higher than the interest - rate style. In the interest - rate style portfolio, the urban investment ultra - long - type and industrial ultra - long - type strategies had smaller drawdowns, with weekly returns of - 0.03% and - 0.04% respectively. In the credit - style portfolio, the urban investment ultra - long - type and industrial ultra - long - type strategies led in returns, reaching 0.41% and 0.4% respectively. The Pu - xin bond heavy - position strategy was advantageous [10][14][15]. - **Combination Weekly Return Source**: The coupon of various strategy portfolios continued to decline, while the capital gains of the urban investment bond heavy - position strategy contributed significantly. Among the mainstream credit - style strategies, the weekly coupon decline of the second - tier bond bullet - type and duration portfolios exceeded 0.13bp, while the annualized coupons of the urban investment bond duration and dumbbell - type strategies remained above 2.19%, exceeding the readings of portfolios such as perpetual bond duration and securities firm bond sinking. This week, the divergence in return sources was relatively large, and the coupon contribution of the credit - style portfolio generally fell within the range of 10% - 70%, with the readings of the urban investment bond heavy - position strategy mostly below 40%, indicating rich capital gains [3][25]. 3.2 Credit Strategy Excess Return Tracking - In the past four weeks, the urban investment bond duration strategy balanced returns and defensiveness well. Except for the commercial financial bond bullet - type portfolio, the other medium - long - term strategies had certain excess returns in the past month. The cumulative excess returns of the perpetual bond duration, second - tier bond duration, and urban investment dumbbell - type portfolios reached 18.5bp, 14.7bp, and 5.1bp respectively. However, the possibility of volatility and correction was greater than that of other strategies. Among the low - volatility portfolios, the urban investment bond duration strategy with leading returns was worth attention [4][29]. - In terms of strategy duration, the excess returns of medium - long - term and ultra - long - term strategies were significantly compressed. In the short - term, the certificate of deposit strategy showed a negative deviation from the benchmark for four consecutive weeks, while the excess return of the urban investment sinking strategy gradually expanded. Except for the securities firm bond sinking, urban investment duration, and dumbbell - type portfolios, the excess returns of the other medium - long - term strategies were negative. The ultra - long - term strategy performance was divergent, with the urban investment and industrial ultra - long - type strategies having small excess returns, while the reading of the second - tier ultra - long - type strategy dropped to - 25.6bp, showing a significant decline compared to the previous period [4][31].

Group 1: Quantitative Credit Strategy - The recent medium to long-term strategies have shown strong cumulative returns, with perpetual bond duration, secondary bond bullet-type, and secondary bond duration strategies achieving cumulative excess returns of 13bp, 11.2bp, and 11.1bp respectively [2][12] - The secondary bond duration strategy has rebounded significantly, but its volatility is much higher than that of the downshift strategy, which has a cumulative return of 9.2bp, demonstrating both low volatility and strong recovery advantages [2][12] Group 2: ETF Trends - From October 13 to October 17, bond ETFs experienced a net outflow of 13.36 billion yuan, with credit bond ETFs, interest rate bond ETFs, and convertible bond ETFs seeing net outflows of 7.46 billion yuan, 4.96 billion yuan, and 0.94 billion yuan respectively [3][16] - In terms of performance, credit bond ETFs, interest rate bond ETFs, and convertible bond ETFs had weekly net value changes of +0.11%, +0.32%, and -1.77% respectively, indicating a significant pullback in convertible bond ETFs while credit and interest rate bond ETFs showed marginal recovery [3][16] Group 3: Yield Heatmap of Coupon Assets - As of October 20, 2025, the yields of non-financial and non-real estate corporate bonds have mostly declined, particularly for public offerings of private enterprises within one year [4][19] - The yields of financial bonds have generally decreased, with bank subordinated bonds performing well, especially the yields of 3-5 year perpetual bonds from state-owned banks and city commercial banks dropping by over 4.5bp [4][19] Group 4: Long-term Credit Bond Tracking - The number of transactions for long-term credit bonds has not increased significantly, with a total of 276 transactions for bonds with a duration of 7 years or more during the week of October 13 to October 17, indicating ongoing concerns about duration risk in the market [5][21] - The improvement in transaction numbers is more concentrated in secondary capital bonds and interest rate bonds, suggesting a cautious market sentiment towards long-term credit bonds [5][21] Group 5: Local Government Bond Supply and Trading - During the week of October 13 to October 17, 7-10 year local government bonds outperformed the same duration national and credit bonds, with indices for these bonds rising by 0.32% and 0.58% respectively [6][25] - The performance of bonds with a duration of over 10 years was weaker compared to national bonds, which saw a weekly increase of over 1% [6][25]

Report Industry Investment Rating No relevant content provided. Core Viewpoints - As of October 10, the heavy - position portfolios of medium - to - long - term secondary capital bonds and ultra - long industrial bonds performed better. The average return of the heavy - position portfolio of credit - style secondary capital bonds increased slightly last week, and the bullet - type strategy had an absolute return of around 0.15% with relatively small cumulative drawdown in Q3. The ultra - long bond heavy - position strategy's return rebounded by nearly 25bp, with the industrial ultra - long strategy reaching a relatively high level of 0.2% [2][12]. - The durations of mainstream credit bond varieties continued to shorten. As of October 10, the weighted average trading terms of urban investment bonds and industrial bonds were 1.65 years and 1.88 years respectively. Among commercial bank bonds, the weighted average trading terms of secondary capital bonds, bank perpetual bonds, and general commercial financial bonds were 3.79 years, 3.36 years, and 1.69 years respectively, with general commercial financial bonds at a relatively low historical level [3][14]. - As of October 13, 2025, the valuation yields and spreads of private enterprise industrial bonds and real estate bonds in the outstanding credit bonds were generally higher than those of other varieties. Compared with last week, the yields of non - financial and non - real - estate industrial bonds generally declined, with an average decline of 6.4BP for varieties within 1 year [4][16]. - From the perspective of yields, the average return level of exchange - traded science and technology innovation bonds remained stable this week. The return of the relatively active 1 - 3 - year varieties increased by 3bp to 1.93%, while the interest rates of 3 - 5 - year varieties decreased, and the spread with non - science and technology general credit bonds of the same term widened to around 40bp [5][20]. - Affected by the National Day holiday, local government bonds worth 10.3 billion yuan were issued from October 9 to 10, all of which were refinancing general bonds. As of October 10, 2025, no special refinancing special bonds were issued in October. The average issuance interest rate of local government bonds declined marginally, and the spread between the 10 - year local government bond issuance rate and the same - term treasury bond rate was stable at around 25bp [6][22]. Summary by Directory Quantified Credit Strategy - As of October 10, the heavy - position portfolios of medium - to - long - term secondary capital bonds and ultra - long industrial bonds performed better. The average return of the heavy - position portfolio of credit - style secondary capital bonds increased slightly last week. The bullet - type strategy, with its previous declines gradually narrowing, had an absolute return of around 0.15% and relatively small cumulative drawdown in Q3, having both defensive and rebound - betting advantages. The secondary bond duration strategy was also strong. The return of the ultra - long bond heavy - position strategy rebounded by nearly 25bp, and the industrial ultra - long strategy reached a relatively high level of 0.2% [2][12]. Variety Duration Tracking - The durations of mainstream credit bond varieties continued to shorten. As of October 10, the weighted average trading terms of urban investment bonds and industrial bonds were 1.65 years and 1.88 years respectively. Among commercial bank bonds, the weighted average trading terms of secondary capital bonds, bank perpetual bonds, and general commercial financial bonds were 3.79 years, 3.36 years, and 1.69 years respectively, with general commercial financial bonds at a relatively low historical level. Among other financial bonds, the durations of securities company bonds, securities sub - bonds, insurance company bonds, and leasing company bonds were 1.37 years, 1.79 years, 3.22 years, and 1.11 years respectively. The durations of securities sub - bonds and leasing company bonds shortened, and securities company bonds were at a relatively low historical percentile [3][14]. Coupon Asset Heat Map - As of October 13, 2025, the valuation yields and spreads of private enterprise industrial bonds and real estate bonds in the outstanding credit bonds were generally higher than those of other varieties. Compared with last week, the yields of non - financial and non - real - estate industrial bonds generally declined, with an average decline of 6.4BP for varieties within 1 year. The interest rate declines of general commercial financial bonds were basically around 5BP. Among the second - tier perpetual bonds, the 2 - 5 - year varieties performed better, and the yield of 2 - 3 - year state - owned large - bank secondary capital bonds declined by more than 10BP. In addition, the yield of publicly - offered non - perpetual securities company bonds and sub - bonds within 1 year declined by 7.0BP [4][16][18]. Science and Technology Innovation Bond Prism - From the perspective of yields, the average return level of exchange - traded science and technology innovation bonds remained stable this week. The return of the relatively active 1 - 3 - year varieties increased by 3bp to 1.93%, while the interest rates of 3 - 5 - year varieties decreased, and the spread with non - science and technology general credit bonds of the same term widened to around 40bp. After the holiday, the absolute value of the low - valuation deviation of 3 - 5 - year exchange - traded science and technology innovation bonds was also higher than that of science and technology innovation bonds of other terms or general credit bonds of the same term, indicating that investors' preference for science and technology innovation bonds of this term recovered relatively quickly [5][20]. Local Bond Perspective - Affected by the National Day holiday, local government bonds worth 10.3 billion yuan were issued from October 9 to 10, all of which were refinancing general bonds. As of October 10, 2025, no special refinancing special bonds were issued in October. The average issuance interest rate of local government bonds declined marginally, and the spread between the 10 - year local government bond issuance rate and the same - term treasury bond rate was stable at around 25bp [6][22].

Group 1: Quantitative Credit Strategy - The duration strategy has continued to perform poorly as of September 30, with the cumulative excess return of the AA+ city investment bonds in a barbell strategy dropping to around -34 basis points [2][12] - The duration strategy for perpetual bonds has shown significant volatility, with cumulative excess returns remaining low at -18 basis points and -30 basis points despite a larger recovery after declines in September [2][12] - In contrast, short-end city investment bonds and bullet-type commercial bank bonds have shown relatively better excess returns [2][12] Group 2: Duration Tracking of Various Bonds - As of September 30, the weighted average transaction durations for city investment bonds and industrial bonds are 1.76 years and 2.22 years, respectively, indicating a defensive characteristic and falling within the 65%-80% historical percentile range since 2021 [3][16] - The weighted average transaction durations for secondary capital bonds, perpetual bonds, and general commercial bank bonds are 3.67 years, 3.70 years, and 1.92 years, respectively, showing a notable decline in their percentile levels [3][16] - Other financial bonds, such as securities company bonds and insurance company bonds, have also shown low historical duration percentiles, with durations of 1.51 years, 1.73 years, 4.11 years, and 1.23 years [3][16] Group 3: Yield Heatmap of Coupon Assets - As of September 29, 2025, yields for non-financial and non-real estate industrial bonds have generally increased, with significant rises exceeding 9.5 basis points for certain private non-perpetual bonds and state-owned enterprise perpetual bonds [4][20] - The yields for financial bonds have also risen, particularly for mid-to-long-term secondary capital bonds and state-owned bank perpetual bonds, which have increased by over 12 basis points [4][20] - Some short-end products have stabilized, with yields for certain city and rural commercial bank bonds showing minimal changes [4][20] Group 4: Long-term Credit Bond Analysis - The spread between active long-term credit bonds and comparable government bonds has reached a 24-year high, with the spread for 10-year bonds widening to a new annual high [5][22] - Despite the apparent advantages of long-term credit bonds post-adjustment, the lack of incremental funding support suggests that duration strategies should remain cautious until market sentiment improves [5][22] Group 5: Local Government Bond Supply and Trading - The latest week has seen a weak sentiment in the bond market, with the average issuance rates for local government bonds continuing to rise, reaching new highs for bonds with maturities of 20 years and above [6][27] - The issuance rates for local government bonds with maturities of 10 years and above have widened to over 20 basis points compared to similar maturity government bonds, indicating a higher percentile reading for the year [6][27]

Quantitative Credit Strategy - The short-end perpetual bond strategy has shown defensive attributes, with excess returns of 13.3bp for city investment short-end, 7.2bp for commercial bank bullet-type bonds, and 6.6bp for bank perpetual bonds over the past four weeks [2][11] - City investment strategies have underperformed compared to perpetual bond strategies, with cumulative returns deviating from the benchmark by -10bp and -30bp for duration and barbell strategies respectively, while perpetual bond bullet-type and sinking strategies achieved around 5bp of excess returns [2][11] Duration Tracking of Bond Types - As of August 24, the weighted average durations for city investment bonds and industrial bonds are 2.01 years and 2.60 years respectively, while the durations for secondary capital bonds, bank perpetual bonds, and general commercial bank bonds are 4.30 years, 3.77 years, and 2.75 years respectively [3][15] - Bank perpetual bonds are at a historically low level, and other financial bonds have shown slight increases in duration, with securities company bonds and subordinated bonds at low historical percentiles [3][15] Yield Heatmap of Bond Types - As of August 25, the valuation yields and spreads of private enterprise industrial bonds and real estate bonds are higher than other types [4][18] - Non-financial and non-real estate industrial bond yields have generally increased, particularly for medium to long-term bonds, with a 4.8bp rise in 3-5 year state-owned enterprise private non-perpetual bonds [4][18] Long-term Credit Bond Tracking - The trading sentiment for long-term credit bonds remains low, with a decline in transaction volumes for 7-10 year industrial bonds and 10-year-plus credit bonds at yearly lows [4][22] - The yield adjustments for bonds over 7 years have exceeded 10bp, with the yield spread between 7-year city investment bonds and 20-30 year government bonds nearing 50bp [4][22] Local Government Bond Supply and Trading Tracking - A total of 369.2 billion yuan in local government bonds were issued in the week of August 18-22, including 239.3 billion yuan in new special bonds and 73.5 billion yuan in refinancing special bonds [5][25] - The main investment areas for special bond funds are "special new special bonds" and "ordinary/project income," with 550 billion yuan of special refinancing bonds issued in August, accounting for 5.6% of the month's local bond issuance [5][25]

Group 1 - The simulated portfolio continues to show negative returns, with the medium and short-term credit style portfolio experiencing smaller drawdowns compared to the corresponding interest rate style portfolio, while the long-term portfolio has seen significant declines [2][14] - In the interest rate style portfolio, the weekly returns for the deposit sinking and deposit bullet strategies were both -0.25%, while in the credit style portfolio, these strategies had smaller drawdowns with returns of -0.14% each [2][14] - The credit style deposit-heavy portfolio's weekly average return slightly rebounded to -0.14%, outperforming the corresponding interest rate style portfolio by 10.7 basis points, marking the strongest defensive strategy since late July [2][17] Group 2 - The credit strategy has created a certain yield space, with the secondary bond duration strategy's yield distance from the year's low exceeding 20 basis points [3][26] - The main strategy combinations have seen yields stop falling and start to rise, with the secondary bond duration strategy's weekly yield increasing by nearly 0.16 basis points, bringing the annualized yield to 2.02%, which is 22.3 basis points wider from the year's low [3][26] - The weekly yield contribution from the credit style portfolio remains in the range of -25% to -5%, with capital gains continuing to drag down returns [3][26] Group 3 - In the past four weeks, the medium and short-term perpetual bond heavy strategies have shown certain defensive attributes, with cumulative excess returns for the city investment short-term sinking, commercial bank bullet, and perpetual bond sinking strategies reaching 13.3 basis points, 7.2 basis points, and 6.6 basis points respectively [4][32] - The city investment heavy strategies have recently underperformed compared to the secondary perpetual heavy strategies, with the cumulative returns for the city investment duration and barbell strategies deviating from the benchmark by -10 basis points and -30 basis points respectively [4][32] - The short-end strategies have outperformed the benchmark, while the city investment sinking strategy's excess returns have fallen into negative territory [4][35]

Group 1: Report's Investment Rating - No information provided on the report's industry investment rating Group 2: Core Views - This week, the simulated portfolio's returns turned negative, with the credit - style portfolio's retracement relatively controllable. Among the interest - rate style portfolios, the short - end sinking of urban investment bonds and the sinking strategy of certificates of deposit (CDs) had relatively high weekly return readings, both around - 0.41%. Among the credit - style portfolios, the short - end sinking of urban investment bonds and the sinking strategy of CDs had smaller retracements, with return readings of - 0.16% and - 0.16% respectively [2][15][16]. - Since July, the CD strategy has a higher odds. The average weekly return of the credit - style CD heavy - position portfolio dropped to - 0.17%, a decrease of about 24bp from last week. It is also one of the few strategies with positive cumulative returns in the past three weeks. The corresponding interest - rate style portfolio underperformed the defensive strategy again after two weeks [2][19]. - In terms of return sources, the coupon of the credit - style urban investment bond heavy - position strategy is approaching the annual low and can hardly withstand recent fluctuations. The coupon contributions of the credit - style portfolio this week generally fell within the range of - 25% to - 5%, and capital gains significantly dragged down the comprehensive return [3][27]. - In the past four weeks, except for the short - end sinking of urban investment bonds, the remaining mainstream strategies generally lacked excess returns. From the perspective of strategy terms, short - term strategies significantly outperformed. Short - term CD strategies outperformed the benchmark, and the excess return of urban investment sinking reached the highest since late June [4][31][33]. Group 3: Summary by Relevant Catalogs 1. Portfolio Strategy Return Tracking 1.1 Portfolio Weekly Return Overview - As of August 15, this year, the cumulative returns of the interest - rate style and credit - style portfolios have significantly lagged behind the same period in the past two years. Among the main credit - style portfolios, the cumulative comprehensive returns of the long - term industrial portfolio, the short - end sinking of urban investment bonds, and the duration portfolio led, reaching 1.48%, 1.39%, and 1.22% respectively. The cumulative returns of the credit - style portfolios all exceeded the corresponding interest - rate style portfolios, while the cumulative returns of the interest - rate style portfolios basically fell back to within 1% [10]. - The average weekly return of the credit - style CD heavy - position portfolio dropped to - 0.17%, a decrease of about 24bp from last week. The weekly return of the urban investment bond heavy - position portfolio decreased by 38.6bp to - 0.27% compared with the previous week. The weekly return of the secondary bond heavy - position portfolio decreased by more than 40bp, but its absolute return performance was slightly stronger than that of the interest - rate style portfolio. The average return of the long - term bond heavy - position strategy dropped to - 0.55%, a decrease of about 64bp compared with the previous week [2][19]. 1.2 Portfolio Weekly Return Sources - The coupons of the main strategy portfolios continued to decline. The coupons of the short - end sinking and dumbbell - shaped portfolios of urban investment bonds were around an annualized 1.92% and 1.97% respectively, less than 5bp away from the annual low. The coupon of the secondary bond duration portfolio was still 14bp away from the low point, and the coupon volatility remained high [3][27]. 2. Credit Strategy Excess Return Tracking - In the past four weeks, the cumulative excess returns of the short - end sinking of urban investment bonds, the bullet - shaped portfolio of commercial financial bonds, and the sinking strategy portfolio of secondary bonds reached 16.2bp, 0.9bp, and 0.6bp respectively, while the cumulative readings of the remaining strategy portfolios dropped to the negative range. This week's weak performance widened the gap between the cumulative returns of the heavy - position strategy of Tier 2 and perpetual bonds and the urban investment bond heavy - position strategy, with the cumulative excess return dropping to below - 22bp [4][31]. - From the perspective of strategy terms, short - term strategies significantly outperformed. Short - term CD strategies outperformed the benchmark, and the excess return of urban investment sinking reached the highest since late June. In the medium - and long - term, all strategies showed negative excess returns, except that the excess return of the short - end sinking of urban investment bonds reached 9.7bp. The negative deviations of Tier 2 capital bonds and the bullet - shaped portfolio of commercial financial bonds from the benchmark were within 2bp, also having a certain defensive property [4][33]. Appendix: Simulated Portfolio Allocation Method - The simulated portfolio has some limitations, including the distortion of the portfolio allocation method and errors in the return calculation method. The actual product's bond allocation in terms of grade and term distribution is more complex and may change strategies according to market conditions. The fixed bond ratio in the simulated portfolio may be distorted, and there are some assumptions and simplifications in the calculation method of coupon and capital gains [5][47]

Quantitative Credit Strategy - As of August 1, the secondary capital bond heavy strategy has rapidly recovered, with the weekly average yield of the credit style secondary bond heavy portfolio rising nearly 87 basis points, reaching the highest absolute return since April [2][12] - The secondary bond heavy and long-term industrial strategies showed significant recovery compared to other portfolios, with weekly returns of 0.31% and 0.51%, respectively, compensating for over 65% of the losses from the previous week [2][12] - Financial bond duration strategies generally outperformed, with secondary bonds, perpetual bonds, and brokerage bond duration portfolios beating the mid-to-long-term benchmark by approximately 9.2 basis points, 8.7 basis points, and 10.4 basis points, respectively [2][12] Duration Tracking of Varieties - The transaction duration of secondary capital bonds has risen to 4.8 years as of August 3, with urban investment bonds and industrial bonds weighted at 2.24 years and 3.03 years, respectively, both at over 90% historical percentile levels since March 2021 [3][14] - Among commercial bank bonds, the weighted average transaction durations for secondary capital bonds, bank perpetual bonds, and general commercial bank bonds are 4.79 years, 4.02 years, and 2.91 years, respectively, with bank perpetual bonds at a relatively low historical level [3][14] - For other financial bonds, the durations of securities company bonds, subordinated securities bonds, insurance company bonds, and leasing company bonds are 1.78 years, 2.37 years, 3.00 years, and 1.61 years, respectively, with securities company bonds and subordinated securities bonds at low historical percentiles [3][14] Yield Heat Map of Coupon Assets - As of August 4, the yields of non-financial and non-real estate industrial bonds have generally declined, with yields for 1-year and 2-3 year private enterprise public non-perpetual bonds down by 5.8 basis points and 6.7 basis points, respectively [4][19] - Real estate bonds also saw a decline in yields, with the yield drop for 3-year private enterprise public non-perpetual bonds exceeding 6 basis points [4][19] - In the financial bond sector, bank subordinated bonds are favored, particularly in the short end, with yields for 1-year shares and 1-2 year city commercial bank secondary capital bonds down by 11.5 basis points and 8.8 basis points, respectively [4][19] Long-term Credit Bond Insights - The issuance scale of long-term credit new bonds totaled 13.42 billion, with supply returning to a low level, possibly due to rising issuance costs, as long-term bond issuers await favorable issuance windows [5][21] - Correspondingly, the average issuance rate of long-term credit new bonds continued to rise, with the issuance rate of long-term urban investment bonds reaching over the 50th percentile for the first time in 24 years [5][21] Local Government Bond Supply and Trading Tracking - The average issuance rate of local bonds has marginally increased, with the yield spreads for 30-year, 20-year, and 10-year local bonds widening to 14 basis points, 12 basis points, and 11 basis points, respectively, compared to the same-term government bonds [6][22]