20230810-招银国际-Fixed_Income_Daily_Market_Update_5页_789kb

Fixed Income Commentary Summary

Market Overview

• Markets were quiet this morning with light trading activity. New issues, such as CHILOV '33 traded at par, and existing bonds like SINOCE 6 07/30/24 rose 0.5 pts. Short-term LGFVs saw buying interest, but overall sentiment softened ahead of CPI data.

China Economy Update

• CPI growth dipped to -0.3% in July due to sluggish consumer demand, especially in food and energy sectors, with core CPI showing mild recovery in services. Forecasts maintain 0.6% CPI growth for 2023 and 2% for 2024, with PPI expected to drop 2.7% in 2023 and rise 1.3% in 2024. Deflation may have bottomed, supported by anticipated mild reflation.

Key Events

• Sino-Ocean failed to gain sufficient support for deferring SINOCE 6 07/30/24 coupons, with a consent vote below the required threshold. Other events include bond ratings changes and company updates like Country Garden's leadership change.

Currency and Bond Highlights

• US markets retreated with S&P, Dow, and Nasdaq down, amid sticky inflation raising rate hike probability.
• Asia ex-Japan markets subdued, with China Life Insurance bond new issue at par. European and other bonds showed mixed performances.

Author Certification

• Author confirms personal views and no payment ties to report content. No trading or conflicts declared within specified periods.

Important Disclosures: Risks in securities trading; information based on publicly available data; no liability for reliance; value and returns uncertain; use at own risk.