1. Report Industry Investment Rating - No information provided in the content 2. Core Viewpoints - The US Treasury yield curve twist - flattened last week. Stronger - than - expected services PMI and declining initial claims reduced the possibility of near - term rate cuts. Trade developments decreased trade uncertainties and fueled risk - on sentiment, leading to UST selloffs. Trump shifted his strategy regarding the Fed. Looking ahead, the Fed is expected to hold rates in July, but may be open to a September cut. The US Treasury is expected to maintain current coupon issuance sizes and potentially increase long - end buybacks [3][4][5] 3. Summary by Related Catalogs Secondary Market Recap - The US Treasury yield curve twist - flattened last week. Manufacturing PMI was disappointing, but services PMI was stronger - than - expected and initial claims declined, reducing the chance of near - term rate cuts. Trump reached trade agreements with Japan, the Philippines, and the EU. Japan's auto sector got tariff relief after pledging $550bn investment in the US. Reduced trade uncertainty promoted risk - on sentiment and led to UST selloffs. Trump changed his approach towards the Fed [3][4] - This week, the focus is on the July FOMC meeting and QRA. The Fed is expected to hold rates with Waller and Bowman dissenting. Tariff - induced price pressures and Trump's tariff increase support Powell's patient approach to rate cuts. However, the Fed may signal openness to a September cut. The US Treasury is expected to keep current coupon issuance sizes and guidelines unchanged and may increase long - end buybacks [4][5][6] - Yields on 2 - year and 5 - year Treasury notes rose 5bp and 1bp respectively, while 10 - year yield fell 3bp. China's credit bonds performed well, with China IG and HY bonds strengthening 3bp and 13bp respectively. China CDS and iTraxx Asia ex - Japan IG CDS tightened 2bps and 3bps respectively [2][7][12] Sector Performance - Financial sector mostly strengthened. AMC spreads compressed further. CFAMCI led gains, and China CITIC Financial AMC's stake increase in China Everbright Bank was credit - positive. CCAMCL 30s tightened to a historical low. In leasing, FRESHK 28s tightened, and the sale of Seaco by Bohai Leasing could drive AVOL spreads tighter. FWDGHDs performed strongly, and AT1s were mixed [8][13] - Tech sector was mixed. After SAMR's regulation on promotions, BABA 35s and JD 30s tightened, while MEITUA 30s widened. AACTEC 31s outperformed with 5bps of tightening [9][14] - Other IG Bonds were generally quiet. HAOHUA 30s and SINOCH 31s held flat. China's new dam project in Tibet may benefit Power Construction Corp of China. CHPWCN perps rose, and HXCEME 25s was lifted. CNMDHL 30s and ZHOSHK 28s widened. In HK IG, COSCO requested rights in the Hutchison Ports deal, Hutchison Port's profit increased, and CKHH curve tightened [10][14] - High - yield corporate sector was relatively quiet. VNKRLE 27s added 0.5pts. NWDEVL bonds were range - bound. West China Cement expected an 80% - 100% YoY jump in 1H25 profit, and its 2026s rose nearly 4pts [11][15] Primary Market - China Mengniu Diary issued 3.5bn offshore RMB sustainable bonds, with 5 - year and 10 - year bonds priced at 2% and 2.3% respectively, significantly narrower than the initial guidance. The market认购 was enthusiastic, with the 5 - year and 10 - year bonds having final subscription amounts of 8.9bn RMB and 9.2bn RMB respectively [16][21]