20231027-招银国际-Fixed_Income_Daily_Market_Update_6页_944kb

October 27, 2023 Fixed Income Commentary Summary

This report covers market updates and analyses for fixed-income securities, focusing on bond prices, yields, and key developments.

Market Overview: Over the past day, overnight UST 10-year yields widened by 12 basis points to 498%. Asian markets showed mixed results, with flows favoring the long end. Chinese benchmarks like Alibaba and Telecommunications companies remained stable or slightly tighter on yields. High-beta TMT stocks saw wider price movements. In industrials, US Treasuries and corporate bonds had varied performances, with some names like VNKRLE underperforming due to selling pressure.

Key bond activities included Huarong AMC's sixth USD bond repurchase of USD174 million, targeting longer-dated issues, which signals strong liquidity. Medco Energy accepted early tenders for USD391.8 million of bonds. VNKRLE bonds faced significant sell-offs morning prior. Offshore new issues involved companies like Fujian Zhanglong Group and Energo-Pro AS.

Macro News: US Q3 GDP grew 4.9% qoq, exceeding expectations. Unemployment claims rose to 210k, indicating potential economic cooling. The ECB kept rates steady. Onshore primary issuance volumes were high, raising over RMB142 billion.

Analysts, such as Glenn Ko and colleagues from CMB International, note HRINTH repurchases and other bond performances, recommending specific HRINTH bonds as top picks in the AMC sector. Caution is advised due to potential conflicts of interest in investment banking relationships.