Group 1 - The U.S. Treasury auctioned four-week and eight-week Treasury bills with a high yield of 4.060% and 4.470% respectively [1] - The bid-to-cover ratio for the four-week bills was 3.15, while for the eight-week bills it was 2.70, indicating demand levels [1] - The auction activity was conducted a day earlier than usual due to the market closure on Thursday [1]

Core Viewpoint - The U.S. Treasury auctioned $23 billion of five-year Treasury Inflation-Protected Securities (TIPS) with a winning yield of 1.650%, down from 1.702% on April 17 [1] Summary by Category - **Auction Details** - The auction involved $23 billion of five-year TIPS [1] - The winning yield was 1.650%, a decrease from the previous auction's yield of 1.702% [1] - The bid-to-cover ratio was 2.53, an increase from the prior ratio of 2.28 [1]

Group 1 - The U.S. Treasury auctioned three-month Treasury bills with a winning yield of 4.240%, slightly down from 4.250% on June 9 [1] - The bid-to-cover ratio for the three-month bills was 2.99, an increase from the previous ratio of 2.69 [1] - The auction for six-month Treasury bills had a winning yield of 4.155%, marginally up from 4.150% on June 9 [1] Group 2 - The bid-to-cover ratio for the six-month bills was 2.73, showing a slight decrease from the previous ratio of 2.74 [1]

Group 1 - The issuance of refinancing special bonds by local governments has reached nearly 2 trillion yuan, with several provinces completing their annual issuance tasks ahead of schedule [1][3] - Experts believe that the early issuance of refinancing special bonds highlights a clear direction of proactive fiscal policy, providing more fiscal space for local economic stability [2][6] - As of June 11, the total issuance of refinancing special bonds by local governments has reached 19,281.24 billion yuan, with additional plans from Shandong, Yunnan, and Beijing bringing the total to 20,300 billion yuan [3][7] Group 2 - Jiangsu Province leads in issuance with 2,781.42 billion yuan, followed by Shandong, Beijing, Yunnan, and others, all exceeding 1,000 billion yuan [4][5] - The majority of the refinancing special bonds issued this year are long-term, with 73.21% of the 224 bonds having a maturity of at least 10 years [6] - The interest rates for refinancing special bonds are generally low, with 30-year bonds ranging from 1.90% to 2.35% [6] Group 3 - The National People's Congress has approved an increase of 60,000 billion yuan in local government debt limits to replace hidden debts, with 20,000 billion yuan allocated annually from 2024 to 2026 [7][8] - The government work report emphasizes the need to balance debt resolution with development quality and fiscal sustainability [8] - The shift in local debt management from risk prevention to a dual focus on risk prevention and development promotion is noted as a significant change in strategy [8]

Group 1 - The U.S. Treasury auctioned a four-month Treasury bill with a winning yield of 4.220%, an increase from the previous rate of 4.205% reported on June 4 [1] - The bid-to-cover ratio was 2.96, which is lower than the previous auction's ratio of 3.13, indicating a decrease in demand for the securities [1]

Group 1 - The U.S. Treasury auctioned six-month Treasury bills with a winning yield of 4.195%, down from 4.225% on June 3 [1] - The bid-to-cover ratio was 3.32, compared to 3.44 in the previous auction [1]

Core Viewpoint - The Chinese Ministry of Finance has increased support for economic provinces through special bonds, allocating debt limits to regions with well-prepared projects and high investment efficiency [1][3]. Group 1: Debt Allocation and Growth - In 2025, Zhejiang Province received a new local government debt limit of 378.8 billion yuan, including 55.9 billion yuan for Ningbo, marking an increase of 69.1 billion yuan or approximately 22.3% compared to 2024 [2][3]. - The new debt limit for Zhejiang accounts for about 7.3% of the national total new local government debt (5.2 trillion yuan), which is higher than the province's GDP share of 6.7% in 2024 [3]. - The new debt limit is primarily composed of special bonds, with 34.63 billion yuan allocated for special projects and 3.25 billion yuan for general debt [2][5]. Group 2: Debt Issuance and Management - As of April, Zhejiang had issued approximately 68.6 billion yuan in new special bonds to support 849 public welfare projects [5]. - The second batch of new debt limits for Zhejiang is 165.8 billion yuan, with 138.4 billion yuan for provincial use and 27.4 billion yuan for Ningbo [5][10]. - The allocation of new debt limits to cities and counties will be based on debt risk, financial capacity, and project funding needs [6]. Group 3: Economic Indicators - As of the first quarter of 2025, Zhejiang's GDP reached 2.23 trillion yuan, with a growth rate of 6.0% [7]. - Fixed asset investment growth was recorded at 2.0%, while total import and export volume was 1.2932 trillion yuan [7]. - The local government's debt balance at the end of 2024 was approximately 2.7281 trillion yuan, remaining within the limit of about 2.9462 trillion yuan [11].

Core Points - The U.S. Treasury auctioned a four-month Treasury bill with a winning yield of 4.205%, slightly down from the previous auction yield of 4.220% [1] - The bid-to-cover ratio for this auction was 3.13, indicating a decrease from the prior auction's ratio of 3.36, suggesting a lower demand for the securities [1]

Core Insights - The U.S. Treasury auctioned six-month Treasury bills with a winning yield of 4.225%, slightly down from 4.235% on May 27 [1] - The bid-to-cover ratio was 3.44, indicating strong demand compared to the previous auction's ratio of 3.00 [1] Summary by Category - **Auction Results** - Winning yield for six-month Treasury bills was 4.225% [1] - Previous auction yield was 4.235% on May 27 [1] - **Demand Indicators** - Bid-to-cover ratio was 3.44, showing increased demand [1] - Previous bid-to-cover ratio was 3.00 [1]

Report Industry Investment Rating There is no information provided regarding the report industry investment rating in the given content. Core Viewpoints of the Report - In Q1 2025, the issuance scale of local government bonds reached a record high for the same period, with the issuance of government special bonds for implicit debt replacement advancing rapidly. The supply of new special bonds will gradually increase in Q2. [2] - In 2025, the central government implemented a series of more proactive fiscal policies for counter - cyclical adjustment. Considering the global tariff uncertainties in April, fiscal policies are expected to be moderately strengthened to stabilize economic growth. [2] - The strict supervision of local government debt will continue, and the debt resolution approach is shifting towards "balancing risk prevention and development", which may lead to further differentiation in debt resolution resources and local investment and financing space. [2] Summary by Relevant Catalogs I. Review of Local Government Bond - Related Policies - **Implementation of a more proactive fiscal policy**: The fiscal deficit rate was increased to about 4%, and the deficit scale reached 5.66 trillion yuan. A larger - scale government bond issuance was arranged, including ultra - long - term special treasury bonds of 1.3 trillion yuan, special treasury bonds of 500 billion yuan, and new local government special bond quotas of 4.4 trillion yuan. Policies were also introduced to support land reserve work and promote the stability of the real estate market. [3][4] - **Promotion of implicit debt replacement**: In 2024 - 2026, 2 trillion yuan of local government debt quotas were approved annually for implicit debt replacement. In Q1 2025, nearly 70% of the 2 - trillion - yuan replacement quota was issued, effectively alleviating local debt pressure. [5] - **Improvement of debt management mechanisms**: The Ministry of Finance emphasized not adding new implicit debts, improving local debt monitoring and risk indicator systems, and optimizing special bond management mechanisms, such as expanding investment areas and pilot "self - review and self - issuance" projects. [6][7] II. Review of the Local Government Bond Market in Q1 2025 1. Issuance Overview - **Record - high scale**: In Q1 2025, local government bonds were issued 463 times, with a total amount of 2.84 trillion yuan, an 80.58% increase year - on - year. Special bonds accounted for 85.57% of new issuances. New bonds and refinancing bonds were issued at 1.24 trillion yuan and 1.60 trillion yuan respectively, with replacement implicit debt special bonds accounting for 83.44% of refinancing bonds. The net financing amount was 2.63 trillion yuan, a 174.70% increase year - on - year. [9][10] - **Longer average remaining term**: As of the end of March 2025, the national local government debt balance was 50.17 trillion yuan, and the average remaining term of local government bonds was 10 years (9.1 years at the end of March 2024). [10] - **Regional differentiation**: The top three regions in terms of issuance scale were Jiangsu, Guangdong, and Shandong. Economically active regions were the main issuers of new bonds, while key provinces mainly issued refinancing bonds. [17] 2. Interest Rate and Spread Analysis - **Slight increase in interest rates**: In Q1 2025, the average issuance interest rate of local government bonds was 1.94%, with 1.78% for general bonds and 1.98% for special bonds. [21] - **Widening spread**: The average spread of local government bonds widened to 11.28bp in Q1 2025. There were significant differences in spread trends among provinces, with Qinghai, Jilin, and Guizhou having relatively high spreads. [22] 3. Investment Areas of Local Government Special Bonds - **Infrastructure as the main focus**: In Q1 2025, the top three investment areas of special bonds were transportation infrastructure construction, urban - rural development, and urban infrastructure. The issuance amount of special bonds for transportation infrastructure accounted for over 20%. [30][31] - **Restart of land reserve special bonds**: Single - purpose land reserve special bonds for recycling idle land restarted this year, with an issuance amount accounting for 5.27%, all issued by Guangdong Province. [31] III. Future Outlook of Local Government Bonds - **Increasing supply of new special bonds in Q2**: In Q1 2025, new special bonds were issued at 0.96 trillion yuan, only 21.82% of the annual quota. With the implementation of the "self - review and self - issuance" pilot and the restart of land reserve special bonds in some regions, the supply of new special bonds is expected to increase in Q2. [32] - **Possible strengthening of fiscal policies**: Considering the global tariff uncertainties in April, fiscal policies are expected to be moderately strengthened to stabilize economic growth. The deficit rate was increased to 4%, and new local special bond quotas were increased by 0.5 trillion yuan. [2][35] - **Downward potential and increased volatility of interest rates**: There is still room for the overall downward movement of local government bond issuance interest rates, but volatility may increase due to factors such as external tariff shocks and stock market fluctuations. [36][37] - **Shift in debt resolution approach**: Local debt management will remain strictly supervised, and the debt resolution approach is shifting from "risk prevention" to "balancing risk prevention and development". Future debt resolution resources and local investment and financing space may further differentiate. [38]