20231103-招银国际-Fixed_Income_Daily_Market_Update_7页_944kb

Market Update Summary - Fixed Income Commentary (3 Nov 2023)

The fixed income market saw overnight yields tighten 14-20bps across the curve due to the Federal Reserve's expected dovish tone at the November FOMC meeting, where the federal funds rate was held steady. New issues included BOCAVI's 5y bond at T+130, and DFHOLD's 2026 bond tightened 8bps, closing around T+190 in secondary markets. Asia ex-Japan bonds were firm, with Chinese SOE/TMT benchmarks like HAOHUA and SINOCH tightening by 2-4bps, while high-beta names like MEITUA and XIAOMI tightened by 5-7bps.

Chinese bank bonds traded mixed, with ICBCAS tightening 2-5bps and BCHINA/BOCOHK widening slightly. High-yield issues, such as HRINTH, showed activity; HRINTH bonds were unchanged at +0.02pts higher, and last evening's announcement of USD137mn bond repurchases suggests continued focus on lower cash price and longer-dated bonds, though repurchase volumes dropped. Key questions remain on whether purchase focus will shift, with HRINTH 4.95 11/07/47 emerging as a potential target.

NWDEVL received shareholder approval for NWS disposal, expected to provide HKD21.8bn proceeds, with plans to use part for refinancing and debt redemption. NWDEVL and NWSZF bonds were unchanged, but early redemption incentives exist. Disposal proceeds may fund buybacks or dividends, and NWDEVL's bonds with reset features remain attractive.

Macro news included stronger-than-expected US initial jobless claims, Chinese Caixin PMI slightly higher but below expectations, and US yields retreat. Offshore Asia saw new issues like BOCAVI's BOAC Av 28 tightening 8bps, and ADANIG reported Adani Green seeking USD1.8bn loans.

Key movers included PERTIJ with significant price gains, while DALWAN and INDOIS saw declines. S&P downgraded GLP and GLP China to BB with negative outlook due to liquidity concerns, and news on AMC bailouts for property projects moved market discussions.

Overall, market volatility continues with mixed performance across sectors, influenced by global factors and issuer actions.