Core Viewpoint - The expectation of the Federal Reserve restarting its interest rate cut cycle has reversed the market's bearish sentiment towards U.S. Treasuries, leading to their top performance among major sovereign bonds globally [1] Group 1: U.S. Treasury Performance - In 2025, U.S. Treasuries are projected to yield a return of 5.8%, the best performance among the 15 largest bond markets globally [1] - The yield advantage of U.S. Treasuries over other global sovereign bonds has narrowed from over 200 basis points in January to 120 basis points [2][5] - The 10-year U.S. Treasury yield has decreased by approximately 50 basis points this year, currently hovering near a five-month low [2] Group 2: Global Context - Other major markets, including Japan, the UK, and France, are facing multiple fiscal and political challenges, negatively impacting their bond market sentiment [1][6] - In contrast, U.S. Treasuries are benefiting from weak employment data and dovish signals from the Federal Reserve, which are currently dominating market trends [6] Group 3: Currency Impact - When accounting for currency fluctuations, U.S. Treasuries' performance appears less favorable, with Italian bonds showing a return of 16% and Spanish bonds at 15% for 2025 [7] - The depreciation of the dollar has provided additional returns for investors in non-dollar-denominated assets [7] Group 4: Investment Strategies - Some investment firms, such as BlackRock, are favoring European and UK bonds over U.S. Treasuries from a relative value perspective [10] - The anticipated new round of monetary easing by the Federal Reserve may further support U.S. Treasuries, potentially offsetting the negative impact of a weaker dollar [10]

Core Viewpoint - The Shanghai Stock Exchange has updated its guidelines to support the issuance of company bonds and asset-backed securities (ABS), facilitating the refinancing and expansion of existing financial instruments, which is expected to enhance market liquidity and support the real economy [1][2]. Group 1: Regulatory Updates - The Shanghai Stock Exchange has released a revised guideline for the issuance and listing of company bonds and ABS, allowing for the continuation of issuance and expansion of existing products [2][3]. - The continuation of issuance for company bonds refers to the incremental issuance of existing listed bonds, while the expansion of ABS involves the issuance of additional securities for existing real estate-backed ABS [2][3]. Group 2: Market Impact - The new measures are expected to improve the liquidity of the bond market and meet the reasonable financing needs of market participants, thereby positively impacting the allocation of resources [1][2]. - The expansion mechanism for ABS is anticipated to leverage successful practices from public REITs, potentially increasing the attractiveness and activity in the structured financing market [3][4]. Group 3: Market Statistics - As of May 20, 2025, there are 4,570 ABS with a total market value of 15,601.53 billion and a face value of 15,720.45 billion on the Shanghai Stock Exchange [6]. - The total number of company bonds (including corporate bonds) is 15,692, with a total market value of 129,046.99 billion, which includes 69,508.87 billion from public offerings and 59,538.12 billion from private placements [6][7]. Group 4: Industry Perspectives - Industry experts believe that the new issuance and expansion support will enhance the efficiency of corporate financing and reduce procedural steps [4][5]. - There is a call for improved legal frameworks and information disclosure standards to optimize the use of ABS and other diversified financing tools [8].