20250703-招银国际-Fixed_Income_Daily_Market_Update_6页_888kb

Fixed Income Market Update - July 3, 2025

📊 Market Summary

• Asian G3 bonds tightened slightly across segments, with NHSECS and KORGAS leading price movements.
• Chinese IGs face valuation challenges, especially CNMDHL's new bond priced at T+115, considered less attractive by analysts.

🧾 Macau Gaming Update

• Macau GGR growth accelerated 19% YoY in June '25 fueled by concerts and tourist demand.
• Six-month cumulative GGR was 4.4% higher YoY and partially met the government's revised estimate.
• Recommended plays include MPEL, STCITY/STDCTY, SJMHOL, and MGMCHI.

💰 New Issues Overview

• Notable new issues included China Modern Dairy's 5-yr bond (T+115), Korea Gas Corp.'s 5-yr bond (T+100), and Qatar Insurance's PerpNC6 bond (6.15%).
• Offshore Asia pipeline includes new issuance from Korea Gas Corp. and Zhangzhou Jiulongjiang Group.

📌 Desk Analyst Comments

🐄 CNMDHL

• The issuance of CNMDHL 4.875 (BBB rating) at T+115bps is considered less appealing for Asian investors.
• Analyst recommends avoiding this new bond but sees potential in technical demand for Chinese IGs.

🎭 Macau Gaming

• Macau gaming bonds continue to be driven by sustained tourism recovery.
• Operators benefit from positive EBITDA and normalizing funding access.

💼 Offshore Asia New Issues (Priced)

• SoftBank issued 3-yr, 5-yr, 7-yr and 10-yr bonds with highly attractive coupon rates and narrow spreads for duration.

🌍 Macro Color

• US ADP nonfarm employment fell more than expected (-33K vs. market estimate +99K). Crude oil inventories increased 3.845mn barrels.
• S&P 500 yielded higher across maturities, with key yields at: 2yr 3.78%, 5yr 4.30%, 10yr 4.82%, 30yr 5.82%.

🧩 News & Market Fluctuations

• China Modern Dairy's profit warning affects its financial outlook.
• BABA issues USD7bn retail subsidy; news about Far East Horizon bond conversion and global economic updates noted.

🔍 Important Disclosure

• Viewpoints reflect analyst's personal assessments but are subject to change.
• Analysts and firm neither used nor plan to trade covered stocks or bonds in the last 30 days.
• CMBI assumes no liability for investment losses resulting from use of the report without professional advice.

💼 Disclaimer

• The report is for client distribution only and may not be reproduced or altered.
• U.S., Singapore, and U.K. specific distribution limits apply.