20230728-招银国际-Fixed_Income_Daily_Market_Update_4页_707kb

Fixed Income Credit Commentary Summary - July 28, 2023

Market Movements

• Asian IG bonds showed tighter spreads of 2-5 bps, with high-beta TMT stocks like TECOM GROUP under pressure, seeing 5-20 bps selling pressure. KR space remained quieter and tighter by 1 bp.
• Korean market new issues closed with 1-3 bps tighter spreads, while 5-10 year bonds strengthened. T2s for financials saw better selling amid light flows.
• Hong Kong credits experienced mixed movements, with CKHH/HKLSP/AIA bonds tightening 1-4 bps, while Chinese TMT benchmarks stayed largely unchanged. Financials like Chinese banks showed better selling.
• Chinese SOEs had stable or slightly declining yields, with TMT names like TECOM GROUP showing buying interest.
• US markets declined moderately amid concerns on interest rate cuts, with treasuries rallying sharply due to high GDP growth and declining jobless claims.

Company-Specific Updates

• DALWAN: Resolved commercial disputes with Vanke, leading to bond yield decreases; expected unfreezing of frozen stakes.
• CHINSC: Guided coupon for planned bonds at 3.5%-4.8%, to start bookbuilding on August 2; unchanged bond performance.
• COGARD: Announced sale of undeveloped land; property bonds rallied.
• Other notable: EVERRE's refinancing talks, SINOCE's deferred interest payments.

Macro News and Impacts

• US GDP increased 24% YoY, exceeding expectations, and jobless claims were lower, supporting treasury yield rises.
• Asian markets traded with active flows in certain sectors, influenced by global economic sentiment.

This summary covers key developments in fixed income markets, focusing on Asian and global credit benchmarks, company events, and macroeconomic factors as detailed in the original report.