1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - In different bull - bear stages of the bond market, low - grade credit bonds show different performance patterns. In bull markets, low - grade urban investment bonds have the highest narrowing amplitude of valuation yields, and in bear markets, low - grade bonds are relatively "resilient" [1][2]. - In response to the US tariff adjustment policy, from the national to local levels, efforts are being made to support the development of "integrated domestic and foreign trade" market entities and help foreign - trade enterprises expand the domestic market. In the short term, the market may fluctuate due to tariff policies, but in the long term, the impact of tariffs may gradually decrease [3][42]. - This week, the bond market was volatile. Most varieties of financial bonds had a decline in valuation yields compared with last week, and most credit spreads widened. It is not recommended to trade second - tier perpetual bonds too much currently, and attention can be paid to AMC company - related bonds [59][60]. 3. Summary According to Relevant Catalogs 3.1 Different Bull - Bear Stages of Low - Grade Credit Bonds - **Bull Market**: Low - grade urban investment bonds have the highest narrowing amplitude of valuation yields, with the order of AA > AA+ > AAA. For example, from 2022/12/15 to 2023/6/14, the narrowing amplitudes of the yields of 3 - year urban investment bonds of AAA, AA+, and AA were 81BP, 95BP, and 104BP respectively, while the narrowing amplitude of the 3 - year Treasury bond yield was 30BP. This is due to the reduced risk of credit bonds and the high market risk appetite [1][13]. - **Bear Market**: The narrowing amplitude of the yields of AA - rated urban investment bonds is generally lower than that of AAA and AA+ grades (except for a short - term and rapid bear - market stage in 2024/9/23 - 2024/9/29). High - grade credit bonds have better liquidity, and investors have a high demand for coupon assets, so low - grade bonds are relatively "resilient" [2][13]. - **Individual Bonds in Bear Market**: The individual bonds with narrowing valuations in the bear market are mainly concentrated in real estate and some regions with large debt scales. For example, in the bear - market stage from 2025/3/18 to 2025/4/7, many central and state - owned enterprise entities' bond valuations narrowed, which may be because investors thought the bear market would not last long and high - coupon credit bonds were attractive [11]. 3.2 Urban Investment Bonds Weekly Viewpoint 3.2.1 Local Governments Support "Integrated Domestic and Foreign Trade" Market Entities to Cope with Tariff Impacts - The US has continuously adjusted tariff policies, and China has taken a series of counter - measures and internal economic - stabilizing policies. From the national to local levels, efforts are being made to support the development of "integrated domestic and foreign trade" market entities [22][23][26]. - Fujian Province has taken the lead in formulating a specific implementation plan, including establishing a key - enterprise contact mechanism, organizing foreign - trade enterprises to participate in domestic exhibitions, and providing financial and policy support to help enterprises expand the domestic market and international market [27][32]. 3.2.2 Investment Recommendations - **Focus on "Economic Powerhouses"**: Pay attention to provinces with good development momentum and debt management, such as Guangdong, Jiangsu, etc. Their provincial, prefecture - level, and district - county - level platforms are relatively stable, and the duration can be appropriately extended to 5 years [41][42]. - **Regions with Debt - Resolution Policies**: Focus on regions where significant debt - resolution policies or substantial capital inflows have occurred, such as Chongqing, Tianjin, etc. Consider bonds with a duration of 3 - 5 years [42][43]. - **Cities with Strong Industrial Bases**: Pay attention to prefecture - level cities with strong industrial bases and financial support, such as some cities in Guangxi, Hubei, etc. Choose bonds with a duration of 2 - 3 years [46][47]. 3.3 Financial Bonds Weekly Viewpoint - **Overall Performance**: This week, the bond market was volatile. Most varieties of financial bonds had a decline in valuation yields compared with last week, and most credit spreads widened. The widening amplitudes of insurance perpetual bonds and bank second - tier perpetual bonds were larger, while the credit spreads of some bonds such as securities firms' ordinary bonds and short - term financing bonds narrowed [59]. - **Investment Suggestions**: It is not recommended to trade second - tier perpetual bonds too much currently. For short - term commercial financial bonds, partial profit - taking can be considered. Pay attention to 2Y/AAA - and AA+ commercial financial bonds. Also, pay attention to AMC company - related bonds, as the AMC financial bond market is expected to expand [59][60]. 3.4 Primary Market Tracking - The report provides charts on the issuance of credit bonds, financial bonds, the subscription of urban investment bonds and industrial bonds, the issuance costs, the review and registration of credit bonds, and the completion of registration by the credit bond association, but no specific data analysis is given in the summary part [67][68][72]. 3.5 Secondary Market Observation 3.5.1 "Volume" of Secondary Transactions - The report provides a chart showing the trading volume and number of transactions in the secondary market over time, but no specific data analysis is given in the summary part [83][85]. 3.5.2 "Price" of Secondary Transactions No relevant content provided.