Market Overview - The bond market continued its warm trend on July 31, with the release of the July official PMI data not exerting pressure on the performance of bonds, leading to an overall increase in government bond futures and a general decline in interbank bond yields by approximately 2 basis points [1][2] - The People's Bank of China conducted a net withdrawal of 47.8 billion yuan in the open market, while the overall funding situation remained stable, with a slight increase in overnight repurchase rates at the month-end [1][5] Bond Futures and Yields - Government bond futures closed higher across the board, with the 30-year main contract rising by 0.57% to 119.120, the 10-year main contract up by 0.17% to 108.485, and the 5-year main contract increasing by 0.08% to 105.725 [2] - The yields on major interbank bonds saw a slight decrease, with the 10-year government bond yield down nearly 2 basis points, reported at 1.786% for "25国开10" and 1.703% for "25附息国债11" [2] International Bond Market - In North America, U.S. Treasury yields collectively rose on July 30, with the 2-year yield increasing by 7.38 basis points to 3.941% and the 10-year yield rising by 4.57 basis points to 4.368% [3] - In the Eurozone, the 10-year French bond yield fell by 0.5 basis points to 3.357%, while the 10-year German bond yield decreased by 0.3 basis points to 2.703% [3] Primary Market - The China Development Bank's financial bonds for 1-year, 5-year, and 10-year terms had winning yields of 1.3677%, 1.6187%, and 1.7341%, respectively, with bid-to-cover ratios of 4.15, 4.49, and 3.52 [4] Funding Conditions - The People's Bank of China announced a fixed-rate reverse repurchase operation of 283.2 billion yuan at an interest rate of 1.40%, with the same amount being the winning bid [5] - The Shibor rates for short-term products mostly declined, with the overnight rate increasing by 7.5 basis points to 1.392% [5] Economic Indicators - The official non-manufacturing PMI for July was reported at 50.1, a decrease of 0.4 percentage points, while the manufacturing PMI fell to 49.3, also down by 0.4 percentage points, indicating a slight contraction in manufacturing activity [6] - The comprehensive PMI output index was at 50.2, down 0.5 percentage points, but still above the critical point, suggesting overall expansion in business activities [6] Institutional Insights - Huatai Securities noted that the political bureau meeting's cautious stance on real estate and anti-involution reflects a long-term planning focus rather than short-term stimulus [7] - China Galaxy Securities indicated limited incremental changes from the political bureau meeting, suggesting a downward trend in bond yields, while monitoring risk preferences and government bond supply [7] - CICC highlighted the potential for fiscal policy adjustments in the fourth quarter, with a positive outlook for the bond market in the second half of the year [7]

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Group 1 - Shanxi issued 30-year special local bonds with a scale of 1.94 billion and an issuance rate of 2.13% [1] - Shanxi issued 10-year special local bonds with a scale of 866 million and an issuance rate of 1.85% [1] - Shanxi issued another set of 10-year special local bonds with a scale of 1.63885 billion and an issuance rate of 1.82% [1] - Shanxi issued 7-year general special local bonds with a scale of 1.41727 billion and an issuance rate of 1.74% [1] Group 2 - The marginal multiple for the 30-year bonds was 2.45, with an expected multiple of 2.11 [1] - The marginal multiple for the first 10-year bonds was 2.41, with an expected multiple of 1.82 [1] - The marginal multiple for the second set of 10-year bonds was 2.32, with an expected multiple of 1.82 [1] - The marginal multiple for the 7-year bonds was 2.48, with an expected multiple of 1.76 [1]

July 25, 2025 09:24 AM GMT M Update EM Sovereign Credit Strategy | Global Where Supply Meets Demand EM flows: EMDD funds saw inflows worth US$5.7bn last week versus inflows worth US$69m in the previous week. EM credit issuance: There was US$3.5bn in issuance last week, versus US$10.0bn the previous week. ESG issuance: There was US$0.5bn in ESG-labelled bond issuance in EM last week, bringing year-to-date ESG issuance to US$61.9bn. • For ESG funds, hard currency funds saw inflows of US$11m, local currency fu ...

Core Viewpoint - Jiangxi Province issued a 20-year ordinary special local bond with a scale of 703.43 million yuan and an issuance interest rate of 2.10% [1] Group 1 - The bond issuance was oversubscribed with a marginal multiple of 2.29 times, compared to an expected multiple of 2.08 [1]

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]

Core Viewpoint - The interbank major interest rate bond yields have generally declined at the beginning of the trading session, indicating a potential shift in market sentiment towards lower yields [1] Group 1: Bond Yield Movements - The yield on the 30-year government bond "25 Super Long Special Government Bond 02" decreased by 2 basis points to 1.9275% [1] - The yield on the 10-year policy bank bond "25 Policy Bank 10" fell by 1.75 basis points to 1.81% [1]

1. Report Industry Investment Rating - No relevant information provided 2. Core Viewpoints of the Report - No explicit core viewpoints are presented in the given content. The report mainly offers data on the performance of various global asset markets. 3. Summary by Related Catalogs Global Asset Market Performance - **10 - Year Treasury Yields of Major Economies**: On July 24, 2025, yields varied across countries. For instance, the US was at 4.398%, and Japan at 3.917%. Yields showed different changes in the latest, weekly, monthly, and yearly periods. For example, the US had a latest change of 0.015, a weekly change of - 0.055, a monthly change of 0.155, and a yearly change of 0.239 [3]. - **2 - Year Treasury Yields of Major Economies**: Similar to the 10 - year yields, 2 - year yields were also presented for different economies on July 24, 2025. The US 2 - year yield was 3.830, with a latest change of - 0.020, a weekly change of - 0.120, a monthly change of - 0.070, and a yearly change of - 0.620 [3]. - **USD Exchange Rates Against Major Emerging - Market Currencies**: On July 24, 2025, the exchange rates and their changes were provided. For example, the USD - BRL rate was 5.520, with a latest change of 0.01%, a weekly change of - 0.46%, a monthly change of 0.57%, and a yearly change of 1.69% [3]. - **Stock Indices of Major Economies**: Stock indices of various economies were reported on July 24, 2025. The S&P 500 was at 6363.350, with a latest change of 0.07% and 1.05%, a weekly change of 3.62%, a monthly change of 3.01%, and a yearly change of 12.28% [3]. - **Credit Bond Indices**: Different credit bond indices were presented on July 24, 2025. The US investment - grade credit bond index was 3414.280, with a latest change of - 0.06%, a weekly change of 0.47%, a monthly change of - 0.06%, and a yearly change of 4.51% [3][4]. Stock Index Futures Trading Data - **Index Performance**: A - shares closed at 3605.73 with a 0.65% increase. The CSI 300 closed at 4149.04 with a 0.71% increase, the SSE 50 at 2812.44 with a 0.40% increase, the ChiNext at 2345.37 with a 1.50% increase, and the CSI 500 at 6293.60 with a 1.56% increase [5]. - **Valuation**: The PE (TTM) of the CSI 300 was 13.59 with a 0.05环比 change, the SSE 50 was 11.48 with a - 0.01环比 change, the CSI 500 was 30.76 with a 0.43环比 change, the S&P 500 was 27.00 with a 0.02环比 change, and the German DAX was 20.78 with a 0.04环比 change [5]. - **Risk Premium**: The risk premium of the S&P 500 was - 0.69 with a - 0.01环比 change, and the German DAX was 2.11 with a - 0.07环比 change [5]. - **Fund Flows**: The latest values of fund flows for A - shares, the main board, the SME board, the ChiNext, and the CSI 300 were 542.05, 313.60, N/A, 174.27, and 204.32 respectively. The 5 - day average values were - 313.86, - 182.93, N/A, - 121.12, and 55.64 respectively [5]. - **Trading Volume**: The latest trading volumes of the Shanghai and Shenzhen stock markets, the CSI 300, the SSE 50, the SME board, and the ChiNext were 18447.06, 4870.00, 1181.38, 3524.88, and 4582.37 respectively. The环比 changes were - 198.94, 166.69, - 127.52, - 128.77, and 94.99 respectively [5]. - **Basis and Spread**: The basis of IF was - 7.84 with a - 0.19% spread, the SSE 50 was 4.16 with a 0.15% spread, and the CSI 500 was - 67.60 with a - 1.07% spread [5]. Treasury Futures Trading Data - Treasury futures T00, TF00, T01, and TF01 closed at 108.220, 105.585, 108.255, and 105.665 respectively, with changes of - 0.11%, - 0.09%, - 0.09%, and - 0.09% respectively [6]. - The money market rates R001, R007, and SHIBOR - 3M were 1.6924%, 1.6012%, and 1.5530% respectively, with daily changes of 19.00, 10.00, and 0.00 basis points respectively [6].

厦门发行10年期一般债地方债，规模9.0000亿元，发行利率1.7500%，边际倍数1.77倍，倍数预期1.76； 厦门发行30年期其他专项地方债，规模48.2230亿元，发行利率2.1200%，边际倍数27.56倍，倍数预期 2.02； 厦门发行10年期一般债地方债，规模6.2334亿元，发行利率1.7500%，边际倍数1.81倍，倍数预期2.10； 厦门发行30年期普通专项地方债，规模26.2948亿元，发行利率2.1200%，边际倍数174.54倍，倍数预期 2.02。 ...

China’s 30-year government bond auction on Thursday drew its highest yield since March, as risk sentiment improved and concerns over further losses cooled demand for debt. https://t.co/4mNaLfZmCQ ...