Japan’s primary dealers have requested more sales of two-, five- and 10-year government notes, as well as a decrease in issuance of super-long bonds, according to a Ministry of Finance briefing on Thursday https://t.co/OIuJUgdkOw ...

Market Overview - The cryptocurrency market is experiencing mixed sentiments, with privacy-focused coins like Monero (XMR) and Zcash (ZEC) declining over 4% in the last 24 hours, while major cryptocurrencies such as Bitcoin (BTC), Ether (ETH), and XRP remain stable after bouncing back from recent lows [1] - The CoinDesk DeFi Select and Smart Contract Select Indices have shown strength, increasing approximately 5% and 4% respectively since early Asian trading hours, indicating pockets of growth amid broader market caution [2] Zcash Performance - Zcash has surged over 500% since September, but is now showing signs of a potential bearish double top pattern, raising questions about whether a decline in ZEC could lead to a bounce in BTC and ETH [3] Institutional Adoption and Analyst Insights - Analysts suggest that the cryptocurrency market is still in the early stages of institutional adoption, with potential incoming inflows that could significantly boost valuations, providing hope for Bitcoin bulls [4] - Arca's CIO Jeff Dorman has dismissed rumors regarding Michael Saylor liquidating his BTC holdings, asserting that Saylor's financial position would likely prevent him from selling unless there is a drastic drop in Bitcoin's value [4] Regulatory Developments - Bitget's chief analyst Ryan Lee emphasizes the importance of monitoring U.S. regulatory developments, particularly concerning exchange-traded funds (ETFs), stablecoin payment frameworks, and exchange oversight, as these factors could quickly shift investor sentiment back to a risk-on stance [5] Traditional Market Impact - In traditional markets, Japanese longer-dated government bond yields have surged due to reports of a potential stimulus package worth approximately 17 trillion yen ($110 billion), which could flood the market with bonds and increase yields, potentially impacting risk assets including cryptocurrencies [6]

Core Insights - Local governments in China have significantly increased their borrowing through the issuance of bonds, with a total of approximately 91,062 billion yuan issued in the first ten months of the year, representing a year-on-year growth of about 23% [1][5] - The issuance of local government bonds has accelerated, particularly in the first half of the year, but has shown a downward trend since July, with October's issuance at approximately 5,600 billion yuan, slightly above January's level [1][4] Bond Issuance and Utilization - In the first ten months, about 60% of the funds raised by local governments were used to repay old debts, while around 40% were allocated for major project construction [4][5] - The issuance of new local government bonds totaled approximately 47,000 billion yuan, a year-on-year increase of about 2%, while refinancing bonds reached 44,000 billion yuan, marking a significant year-on-year growth of 58% [5][6] - The refinancing bonds are primarily aimed at repaying maturing government bonds and replacing hidden debts, which helps to optimize the debt structure and alleviate repayment pressure [5][6] Special Bonds and Project Funding - Approximately 12,500 billion yuan of special new bonds were issued, specifically aimed at resolving hidden debts and settling overdue payments to enterprises [5][6] - Of the new special bonds issued, about 90% of the annual quota has been utilized, with 27% allocated to municipal and industrial park infrastructure, 18% to transportation infrastructure, and 16% to land reserves [6][7] Debt Management and Risk Control - The overall risk of local government debt is considered manageable, with the total debt balance as of September 2025 being 536,995 billion yuan, well within the approved limit of 579,874.3 billion yuan [7] - In the first three quarters, local governments repaid 23,863 billion yuan in principal and paid 11,191 billion yuan in interest on bonds [7]

Core Viewpoint - The U.S. Treasury is expected to maintain steady coupon auction sizes for the next three months, emphasizing the importance of forward guidance [1] Group 1 - The U.S. Treasury's decision to hold coupon auction sizes steady indicates a stable approach to managing debt issuance [1] - The focus on forward guidance suggests that market participants will be closely monitoring future signals regarding monetary policy and economic conditions [1]

Core Insights - Shanxi Province successfully issued government bonds totaling 2.373 billion yuan through the Beijing Stock Exchange on October 31, with an average issuance interest rate of 2.02% and an average bid multiple of 23.51 times [1][2] Group 1: Bond Issuance Details - The bond issuance included maturities of 5, 10, 15, and 20 years, with specific bonds having different interest rates: 1.69% for 5-year bonds, 2.01% for 10-year bonds, 2.38% for 20-year bonds, and 2.29% for 45-year bonds [2] - Year-to-date, Shanxi Province has issued a total of 154.9 billion yuan in government bonds, comprising 88.564 billion yuan in new bond issuance and 66.336 billion yuan in refinancing bonds [1][2] Group 2: Strategic Initiatives - The Shanxi Provincial Finance Department is implementing a more proactive fiscal policy, focusing on local debt issuance reform and management, while actively monitoring market dynamics [2] - The recent bond issuance marks an innovative step in expanding issuance channels and collaborating with market participants, achieving full coverage across various issuance venues [2] - Future plans include enhancing the quality and efficiency of bond issuance, strengthening fund control, and promoting fiscal sustainability to support stable economic development in Shanxi Province [3]

Japan’s 30-year government bond auction drew a stronger demand ratio than its 12-month average, easing investor concerns following the surprise victory of pro-stimulus conservative Takaichi in the ruling party leadership race https://t.co/ZhKNY1waK1 ...

Market Volatility - Goldman Sachs indicates that volatility in Japan's longer-dated government bonds is increasing following Sanae Takaichi's election win [1] - The movements in Japanese government bonds could potentially affect markets in the US and UK [1]

Core Viewpoint - Local governments are accelerating borrowing to fund major projects and repay old debts, aiming to boost the economy and mitigate risks [2][3]. Group 1: Borrowing and Debt Management - In the first eight months of this year, local governments issued approximately 7.7 trillion yuan in bonds, a year-on-year increase of 42%, marking a historical high for the same period [2]. - Of the 7.7 trillion yuan in bonds issued, about 3.8 trillion yuan were refinancing bonds, which increased by 64% year-on-year, while new bonds issued amounted to approximately 3.9 trillion yuan, up 26% year-on-year [3]. - Approximately 4.77 trillion yuan, or about 62% of the total borrowing, was allocated to repay old debts, with the remaining nearly 3 trillion yuan primarily directed towards major project construction [6]. Group 2: Allocation of Funds - The funds from newly issued bonds are primarily used for significant public welfare projects, with about 2.3 trillion yuan of the new special bond funds allocated to project construction [5]. - The distribution of the special bond funds includes approximately 28% for municipal and industrial park infrastructure, 18% for transportation infrastructure, 14% for land reserves, and 12% for affordable housing projects [6][7]. - The new special bonds also include around 0.97 trillion yuan used for replacing hidden debts and settling overdue payments to enterprises, which is referred to as special new special bonds [5][6]. Group 3: Regulatory Changes and Market Impact - This year, the management of special bonds has adopted a "negative list" approach, significantly broadening the areas eligible for investment, including land reserves [7]. - The total local government debt balance as of July 2025 is approximately 52.76 trillion yuan, remaining within the limit of about 57.99 trillion yuan, indicating that local debt risks are generally manageable [7].

Core Viewpoint - The issuance of local government bonds remains strong, with a focus on special bonds for debt replacement, stabilizing the real estate market, and funding government investment projects [1][3][5]. Group 1: Local Government Bond Issuance - In August, the issuance of local government bonds reached 977.6 billion yuan, with new special bonds accounting for 486.6 billion yuan, representing about half of the total [1]. - From January to August, the cumulative issuance of new special bonds was 3.26 trillion yuan, which is 74% of the annual quota of 4.4 trillion yuan [3]. - The issuance of special bonds has accelerated in recent months, with amounts of 443.2 billion yuan, 527.1 billion yuan, 616.9 billion yuan, and 486.6 billion yuan from May to August [3]. Group 2: Debt Replacement and Financial Management - Over 40% of the new special bonds issued in August were allocated for government stock investment projects, primarily for debt replacement [1][3]. - The issuance of refinancing special bonds for replacing hidden debts reached 1.93 trillion yuan from January to August, with only about 70 billion yuan remaining for the year [1][3]. - The total issuance of special bonds for debt replacement from January to August was 9.68 trillion yuan, accounting for 30% of all new special bonds issued [3]. Group 3: Funding Allocation and Project Focus - The funds from new special bonds are primarily directed towards project construction, including municipal infrastructure, transportation, and social services [3][4]. - The issuance of land reserve special bonds has increased, with a total of 324 billion yuan issued across ten provinces from January to August [4]. - Special bonds for "stabilizing the real estate market" amounted to approximately 595 billion yuan from January to August, making it the second-largest category of funding after municipal infrastructure [5]. Group 4: Support for Government Investment Funds - A significant portion of the special bonds issued in August was directed towards government investment funds to support technological innovation and emerging industries [7][8]. - Various provinces, including Beijing and Shanghai, have issued special bonds to inject capital into government investment funds, with amounts ranging from 50 billion yuan to 100 billion yuan [7][8]. - The shift in the use of special bonds towards supporting strategic emerging industries reflects a broader trend of reallocating funds from traditional infrastructure to new infrastructure and innovation-driven projects [8][9].

Government Bond Issuance - Japan's Ministry of Finance is seeking feedback from primary dealers regarding potential further reductions in the issuance of longer-maturity government bonds [1]