20240214-招银国际-Fixed_Income_Daily_Market_Update_4页_774kb

Fixed Income Market Summary - 14 Feb 2024

Key Overnight Markets

• U.S. Treasury (UST) yields widened 3-7bps across the curve before CPI data release.
• Asian high-yield (IG) space showed better buying interest from banks, with Woori Bank (KR) and ANZ (AU) T2s receiving better bids.

Bond Performance and News

• CSCHCN: China South City experienced a default reported on 9 Feb 2024, missing amortization and coupon payments on specific notes (CSCHCN910/09/24 and CSCHCN904/12/24), leading to a price drop of 13-18pts. The YTD gains for CSCHCN curve are largely erased due to this move.
• MGMCHI: MGM China's 4Q23 revenue surged 462% YoY to HKD77 billion, with positive adj EBITDA.
• Trading desk comments highlight:
  • Chinese SOE/TMT benchmarks slightly wider (e.g., HAOHUA/SINOPE/TENCENT +30-31bps).
  • High-beta TMTs (e.g., XIAOMI/WB30 +2bps wider), financials (HRINTH -01 to -03pts, HRINTH widened 5-20bps), and AT1s mixed.
  • Macau gaming names better-performing (+6-1pt higher for MPEL/WYNMAC/SFHOLD decline).
  • Indian conglomerate VEDLN +13-16pts higher.
  • LGFV/SOE perpetuals stable, with some quality issues (e.g., HZCONI/WUXIN +3pts, but some names down).
• Macro news recap: U.S. markets closed lower due to stronger-than-expected Jan 2024 CPI (yoy 3.1%, core CPI 3.9%), indicating potential Fed rate risks.

Specific Movers

• Top performers: VEDLN (+13-16pts), GLPCHI (+13pts).
• Top underperformers: CSCHCN notes (~-18 to -32pts down), MPEL (~-18pts).

Important Notes

• CSCHCN default situation: Refinancing pressures and debt restructuring are key concerns for China South City.
• Flow is light ahead of CNY session.

This summary is based on the Fixed Income Daily Market Update for 14 Feb 2024.