Report Industry Investment Rating - No information provided on the report industry investment rating Core Viewpoints - Asia IGs tightened 1 - 3bps this morning, and the credit profile of Vedanta Resources (VRL) continues to improve, with the recommendation to buy VEDLN 10.875 09/17/29 and change the recommendation on VEDLN 9.475 07/24/30 from neutral to buy [3][7][8] - Onshore primary issuances showed a 15% yoy increase in the amount of credit bonds issued month - to - date [17] Summary by Related Catalogs Trading Desk Comments - In KR, LGENSO 26 - 35s tightened 1 - 4bps, and its 2Q25 operating profit rose 31% qoq from 1Q25; HYUELE 26 - 33s were unchanged [1] - In insurance, CATLIF 34/39 tightened 1 - 2bps; MYLIFE/NIPLIF 54s and ASAMLI Perps were up 0.1 - 0.3pt [1] - In JP, NSANY 26 - 30s were unchanged to 1.0pt higher [1] - In HK, NWDEVL Perps/27 - 31s were unchanged to 0.4pt higher; HYSAN Perps were 0.4 - 0.8pt higher; LASUDE 26 rose 0.7pt; LIFUNG Perp lowered 0.8pt, closed 2.8pts higher WoW [1] - In Chinese properties, DALWAN 26 was up 0.8pt; ROADKG 28 - 30s were 0.2 - 1.3pts lower, closed 3.8 - 5.6pts lower WoW; ROADKG Perps were 0.1pt higher, closed unchanged to 0.1pt lower WoW [1] - Outside properties, EHICAR 26 - 27s were up 0.4 - 0.9pt; WESCHI 26 was up 0.3pt, closed 4.1pts higher WoW; FOSUNI 25 - 27s lowered 0.1 - 0.5pt [1] - In SE Asia, GLPSP Perps/28 were up 0.4 - 1.7pts, closed 1.2 - 2.5pts higher WoW; VLLPM 29 was up 0.8pt; VEDLN 28 - 33s were unchanged to 0.1pt higher [1] - In CNH space, the new CNH TEMASE 30/35/55 and CNH CHMEDA 30/35 were unchanged to 0.1pt lower [2] - In LGFVs, BINHCO priced 3yr bond at par to yield 4.95% (IPT at 5.8% area); DAZAKI priced 3yr bond at par to yield 7% (IPT at 7% area); SCDFGU priced 3yr bond at par to yield 6.8% (IPT at 6.8% area) [2] Last Trading Day's Top Movers - Top Performers: GLPSP 4.6 PERP rose 1.7pts to 51.2; GLPSP 4 1/2 PERP rose 1.4pts to 53.8; TSIVMG 1.55 12/17/29 rose 1.4pts to 71.5; NSANY 4.81 09/17/30 rose 1.0pts to 92.5; NSANY 7 3/4 07/17/32 rose 1.0pts to 102.4 [5] - Top Underperformers: ROADKG 5 1/8 01/26/30 dropped 1.3pts to 21.3; LIFUNG 5 1/4 PERP dropped 0.8pts to 50.7; ROADKG 5.2 07/12/29 dropped 0.7pts to 23.0; ROADKG 5.9 09/05/28 dropped 0.6pts to 24.3; FOSUNI 5.95 10/19/25 dropped 0.5pts to 100.0 [5] Macro News Recap - S&P (+0.40%), Dow (+0.47%) and Nasdaq (+0.24%) were higher on last Friday [6] - The EU reached a tariff deal with the US, facing 15% tariffs on most of its exports [6] - The US Jun'25 Durable Goods Orders was - 9.3% mom, compared to the market expectation of - 10.4% [6] - UST yield was lower on last Friday, with 2/5/10/30 yield at 3.91%/3.95%/4.40%/4.92% [6] Desk Analyst Comments - Vedanta Resources will prepay the remaining USD550mn of its PCF in Aug'25, funded by bank facilities with lower interest costs [7] - VRL may consider a buyback of its USD bonds after PCF refinancing and demerger [7] - The credit profile of VRL continues to improve, with lengthened debt maturity and lowered funding costs [8] - The performance of VEDLNs may be supported by potential early redemptions [8] Offshore Asia New Issues - Priced: Dazhou Kaisheng Construction issued 70mn USD 3 - yr bond at 7.0% yield; Sichuan Zigong Huidong Development issued 69.5mn USD 3 - yr bond at 6.8% yield; Tianjin Binhai New Area Construction & Investment Group issued 244mn USD 3 - yr bond at 4.95% yield [12] - Pipeline: No offshore Asia new issues pipeline today [13] News and Market Color - Regarding onshore primary issuances, 77 credit bonds were issued last Friday with an amount of RMB84bn; month - to - date, 1,797 credit bonds were issued with a total amount of RMB1,930bn, a 15% yoy increase [17] - Macau visitors climbed 15% yoy in 1H25 with a jump in same - day travelers [17] - Alibaba halves prices of cutting - edge AI model and a senior executive is accused of taking USD5.6mn in bribes [17] - First Pacific's Philippine power arm expects higher FY25 earnings [17] - Fantasia further delays offshore debt restructuring closing to 1 Aug'25 [17] - Li & Fung gives tender priority to bondholders who also subscribe to new bonds [17] - China Vanke sells a project for RMB1.4bn (cUSD195mn) [17]

Market Overview - Pre-market futures are showing positive movement, albeit with some volatility, influenced by a new economic report and Q2 earnings releases [1] - Major indices are experiencing slight gains, with the Dow up 55 points, S&P 500 up 8 points, and Nasdaq up 6 points [2] - Over the past week, indices have seen increases ranging from 0.5% (Nasdaq) to 1% (S&P 500), with significant gains since April 9, including a 29% rise in the Nasdaq [2] Durable Goods Orders - Durable Goods Orders for June reported a decline of 9.3%, which was better than the expected 11.1% drop, following a revised increase of 16.5% in May [3] - Excluding transportation, Durable Goods Orders showed a slight increase of 0.2%, compared to a previous revision of 0.6% [3] - Non-Defense, ex-aircraft orders fell by 0.7%, down from a 2.0% increase in May, indicating potential impacts from changing tariff policies [4] Q2 Earnings Reports - Phillips 66 (PSX) reported Q2 earnings of $2.38 per share, exceeding estimates by 43.37%, with revenues of $33.52 billion, surpassing expectations by 9.75% [5] - AutoNation (AN) also exceeded earnings expectations with $5.46 per share, a 16.17% beat, and revenues of $6.97 billion, beating projections by 2.6% [6] - Centene (CNC) reported a significant earnings miss at -$0.16 per share, falling short of the anticipated $0.68, although revenues of $48.74 billion exceeded estimates by 11% [7] Upcoming Market Events - The upcoming week will see earnings reports from major companies, including Microsoft, Apple, and Amazon, as well as a Federal Reserve meeting [8] - Jobs Week will feature key reports such as JOLTS, ADP private-sector payrolls, and the BLS Employment Situation report, with revisions to prior months being crucial [9]

Economic Activity - Core durable goods orders, excluding defense and air, increased by 17% after a previous decrease of 15% [1] - Advanced goods trade balance came in at $966 billion, exceeding the forecast of $86 billion [2] - Imports remained flat after a previous decrease of 20% [3] Labor Market - Initial jobless claims decreased to 236000 from 246000 [2] - Continuing claims increased from 1937000 to 1974000, suggesting companies may not be actively hiring [6] - Initial jobless claims suggest companies are not actively firing [6] GDP & Consumption - The third reading of GDP came in at negative 05%, worse than the second reading of negative 02% [3] - Personal consumption was reported at 05%, lower than the initial report of 12% [4] Market Sentiment - Companies are holding back, awaiting clarity on tariffs and the Federal Reserve's actions [6]

Economic Indicators - Preliminary durable goods orders surged by 164% [2] - Trade balance deficit reached minus 966 billion [1] - Capital good orders non-defense xir increased by 17% [3] - Shipments rose by 05% [4] - Initial jobless claims decreased to 236000, the lowest since mid-year [7] - Continuing claims remained over 1974 million for five consecutive weeks [7][8] GDP and Consumption - First quarter GDP revised to minus 05%, the weakest since Q1 2022 [4][5] - Consumption dropped to 05% from 12% [6] Inflation - Price index increased to 38%, one-tenth higher than 37% [6] - PCE core moved to 35%, one-tenth higher than 34% [6]