20231009-招银国际-Fixed_Income_Daily_Market_Update_4页_834kb

Fixed Income Credit Commentary Summary

Date: 9 October 2023

Market Overview

• Flows were more active this morning post-US Treasury rates increase. Asian investment-grade (IG) space remained unchanged at 2bps wider.
• LGFV (Local Government Finance Vehicles) space was two-way balanced, with a focus on front-end names.

Key Security Updates

• NWDEVL/NWSZF: Pre-conditions for CTFE's conditional voluntary cash offer satisfied. NWDEVL rose 15-30 pts after last Friday's rally; NWSZF unchanged.
• PTTGC: Repurchased USD36mn of senior notes, price moved +0.3% during morning trading.

Trading Desk Comments

• Last Friday: Asia ex-Japan IG spaces stayed range-bound ahead of US NFP data and long weekends.
• Trading light with majority flows in offshore Chinese AMs, LGFVs, and SOE perps. Specific notches like HRINTH traded higher, while Chinese AT1s were well bid.

Macro News Recap

• US September NFP: +336k, higher than expected +170k; unemployment rate 3.8%, above expected 3.7%.
• US Treasury yields increased: 2-, 5-, 10-, and 30-year yields rose to 5.08%, 4.75%, 4.78%, and 4.95%, respectively.

Analyst Insights and Company News

• All pre-conditions for NWS's cash offer satisfied per CTFE; aims to complete by late December.
• Other updates include PTTGC repurchase, Evergrande halted investment, and various company developments like debt repayments and rating changes.

Important Notes

• Author certification ensures views reflect personal opinions and no conflicts of interest.
• Disclosures highlight potential conflicts from investment banking relationships and risks in securities trading.