As stated in paragraph 6 in General Terms of Auction for Treasury bonds, the Government Debt Management offered the equivalent of 10% of the nominal value sold in the auction 20. June, at the price of accepted bids. SeriesRIKB 28 1115RIKB 38 0215ISINIS0000028249IS0000037265Additional issuance (nominal)275,000,000102,000,000Settlement date06/25/202506/25/2025Total outstanding (nominal)124,037,301,51931,113,000,000 ...

Core Viewpoint - The bond market is experiencing slight differentiation in trends, with government bond futures mostly declining, while interbank cash bond yields have turned downward, indicating a potential shift in market dynamics due to continued monetary policy easing by the central bank [1][7]. Market Trends - On June 23, government bond futures closed mostly lower, with the 30-year main contract down 0.04% at 121.290, and the 10-year main contract down 0.01% at 109.155 [2]. - The interbank major rate bond yields mostly decreased, with the 10-year government bond yield down 0.1 basis points to 1.6370% [2]. - The China Convertible Bond Index rose by 0.43% to 434.97 points, with a trading volume of 543.51 billion yuan [2]. International Market Overview - In North America, U.S. Treasury yields collectively fell, with the 10-year yield down 1.59 basis points to 4.373% [3]. - In Asia, Japanese bond yields increased, with the 10-year yield rising 1.5 basis points to 1.413% [3]. - In the Eurozone, yields on 10-year bonds from France, Germany, Italy, and Spain all decreased, while the UK saw a slight increase in its 10-year yield [3]. Primary Market Activity - The 10-year "Inner Mongolia 2517" bond had a winning bid rate of 1.77%, with a total bid multiple of 26.15 [4]. - Guizhou Province's five local bonds showed strong demand, with bid multiples exceeding 28 times for all issues [4]. Funding Conditions - The central bank conducted a 220.5 billion yuan reverse repurchase operation at a rate of 1.40% on June 23, with the total bid amount matching the amount accepted [5]. - Short-term Shibor rates mostly declined, with the overnight rate down 0.1 basis points to 1.367% [5]. Institutional Insights - Institutions note a current supply-demand imbalance in the bond market, with strong supply and weak demand, particularly in short-term bonds [7]. - There is potential for a shift in this dynamic due to an increase in government bond maturities and possible reductions in insurance long-term liability costs [7]. - The overall sentiment in the bond market remains cautious, with expectations of continued monetary policy easing and potential recovery in government bond trading [7].

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The G7 net DV01 is projected to be $94.3 million per basis point, which is higher than the average of $72.3 million per basis point, indicating increased market activity [2][12] - In the euro area, net issuance is expected to be €14.6 billion over the next five weeks, with a total supply of €97.7 billion against €18.2 billion in coupons and €64.9 billion in redemptions [3][41] - The US is anticipated to issue $342 billion in the next five weeks, resulting in a net issuance of $94.3 billion after accounting for $29.1 billion in coupons and $218.6 billion in redemptions [5][44] Summary by Sections Government Bond Auctions - The upcoming week will see significant bond issuances across various countries, including $69 billion in 2-year UST, $70 billion in 5-year UST, and $44 billion in 7-year UST in the US [4][5] - In the UK, issuances include £1.7 billion in UKTi 1.125% Gilt 2035 and £3.25 billion in UKT 4.375% Gilt 2040 [4] - Japan will issue ¥2.6 trillion in 2-year JGB and ¥1 trillion in 20-year JGB [6] Supply Overview - The report outlines a detailed schedule of bond supply for the upcoming weeks, indicating a robust issuance plan across G7 countries [11][42] - The total cash flow for the euro area is projected to be negative, with significant redemptions expected to exceed new issuances [41] G7 Gross and Net Issuance - The G7 gross issuance figures show fluctuations, with the US leading in issuance amounts, followed by Japan and Canada [12][18] - The net issuance data indicates varying trends across countries, with the US showing a positive net issuance while the euro area reflects negative net issuance [18][20]

Core Viewpoint - Inner Mongolia issued a 10-year general local government bond with a scale of 16.12912 billion yuan and an issuance interest rate of 1.7700% [1] Group 1 - The bond issuance had a marginal multiple of 4.19 times, exceeding the expected multiple of 1.77 [1]

Group 1 - The core viewpoint of the news is that the 0-4 government bond ETF (159816) is experiencing a stable market with a recent price of 113.75 yuan and a notable performance over the past year and three years, with increases of 2.59% and 9.19% respectively [1] - The liquidity of the 0-4 government bond ETF is active, with a turnover rate of 71.43% and a trading volume of 1.269 billion yuan, indicating strong market engagement [1] - The latest Federal Reserve decision maintains the federal funds rate target range at 4.25%-4.5%, aligning with market expectations, and this marks the fourth consecutive month of rate stability [1] Group 2 - It is anticipated that the supply of government bonds will slow down in the second half of the year, easing pressure on the bond market, while demand remains strong due to banks' investment pressures and insurance fund requirements [1] - The 0-4 government bond ETF closely tracks the CSI 0-4 Year Local Government Bond Index, which consists of non-directional local government bonds with a remaining maturity of four years or less, calculated using a market capitalization weighting [2] - The 0-4 government bond ETF is positioned as the only short-duration local government bond ETF in the market, making it suitable for investors as a cash management tool [3]

Group 1 - The A-share market experienced a decline, with all three major indices falling over 1%, and the ChiNext Index down by 1.39% [1] - The 30-year government bond futures rose by 0.22% to 121.13, while the 10-year bond futures increased by 0.03% [1] - The trading volume of the 30-year government bond ETF (Boshi 511130) exceeded 1.3 billion yuan, indicating active trading [1] Group 2 - The bond market is expected to continue a slightly strong oscillating trend in the second half of the year, with strategies suggesting a focus on wave operations [2] - The 30-year government bond ETF (Boshi 511130) was established in March 2024 and is one of only two on-market ultra-long-term bond ETFs, tracking the "Shanghai 30-Year Government Bond Index" [2] - The index reflects the overall performance of corresponding term government bonds in the Shanghai market and is sensitive to interest rate changes [2]

Group 1 - Chongqing issued a 10-year special local bond with a scale of 63 billion yuan [1] - The issuance interest rate is set at 1.69% [1] - The marginal multiple of the bond issuance is 1.13 times, with an expected multiple of 2.00 [1]

Group 1 - The core viewpoint emphasizes the development of science and technology innovation bonds (科创债) and the introduction of related ETFs to enhance investment in technology innovation sectors [1][2] - The China Securities Regulatory Commission (CSRC) plans to accelerate the launch of science and technology innovation bond ETFs, with six initial products reported on the Shanghai Stock Exchange [1] - Since the pilot program began in 2021, the issuance of science and technology innovation bonds has rapidly increased, with a total of 1,273 bonds and a market balance exceeding 1.3 trillion yuan [1] Group 2 - The introduction of science and technology innovation bond ETFs is expected to guide social funds towards key technology innovation areas, supporting the high-quality development of tech companies [1] - The bond ETF market on the Shanghai Stock Exchange has seen significant growth, with 20 products and a total scale of 274.7 billion yuan, which is over five times the scale at the beginning of 2024 [1] - The Shanghai Stock Exchange has also launched four benchmark corporate bond ETFs this year, with a total scale exceeding 56 billion yuan, indicating a focus on high-grade credit bond ETFs [2]

Core Viewpoint - The bond market is experiencing a strong consolidation, with government bond futures rising across the board and interbank bond yields mostly declining, indicating a potential trend towards looser liquidity conditions [1][5] Market Performance - Government bond futures closed higher, with the 30-year main contract up 0.24% at 120.820, the 10-year main contract up 0.14% at 109.160, the 5-year main contract up 0.15% at 106.300, and the 2-year main contract up 0.08% at 102.540 [2] - Major interbank rates mostly fell, with the 10-year policy bank bond yield down 1 basis point to 1.7055% and the 10-year government bond yield down 0.25 basis points to 1.6375% [2] International Market Trends - In North America, U.S. Treasury yields rose across the board, with the 10-year yield increasing by 4.16 basis points to 4.446% [3] - In Asia, Japanese bond yields continued to rise, with the 10-year yield up 2.8 basis points to 1.479% [3] - In the Eurozone, yields on 10-year bonds generally fell, with French yields down 1.9 basis points to 3.232% [3] Primary Market Activity - The China Development Bank's 10-year fixed-rate bond "25国开15" had a winning bid rate of 1.65%, with a total bid-to-cover ratio of 3.94 [4] - The 10-year "25甘肃债23" had a winning bid rate of 1.78% and a total bid-to-cover ratio of 25.05, indicating strong demand [4] Liquidity Conditions - The central bank conducted a 7-day reverse repurchase operation of 1973 billion yuan at an interest rate of 1.40%, with a net withdrawal of 1833 billion yuan on the day [5] - Short-term Shibor rates mostly declined, with the overnight rate down 1.9 basis points to 1.369% [5] Institutional Insights - Huayuan Securities suggests that interest rate bonds may experience narrow fluctuations, recommending attention to credit bonds with yields above 2% [6] - CITIC Fixed Income notes that since March, funding rates have been in a downward trend, indicating a need for a reasonable liquidity environment to support economic growth [7]

Summary of Key Points - Beijing issued a 2-year ordinary special local government bond with a scale of 28.5 billion yuan and an issuance rate of 1.47%, with a marginal multiple of 3.56 times, exceeding the expected multiple of 1.48 [1] - Beijing issued a 3-year ordinary special local government bond with a scale of 183.0128 billion yuan and an issuance rate of 1.48%, with a marginal multiple of 1.69 times, slightly below the expected multiple of 1.49 [1] - Beijing issued a 5-year ordinary special local government bond with a scale of 109.8913 billion yuan and an issuance rate of 1.59%, with a marginal multiple of 2.33 times, lower than the expected multiple of 1.61 [1] - Beijing issued a 7-year ordinary special local government bond with a scale of 5.98 billion yuan and an issuance rate of 1.64%, with a marginal multiple of 1.32 times, below the expected multiple of 1.65 [1]