Fixed Income Daily Market Update

CMBI Credit Commentary Fixed Income Daily Market Update固定收益部市场日报 The new CCUDIH 4.9 03/06/29 edged 0.3pt higher this morning from RO atpar. The new SYSTIO 3.9 03/05/29 was 0.3pt weaker from RO at par. AsianIG space recovered and tightened 3-5bps amid thin liquidity. We saw betterbuying on LGFV names. LIFUNG 5.25 Perp was 0.5pt higher, while ACPM4.85 Perp lost 0.8pt. Glenn Ko, CFA高志和(852) 3657 6235glennko@cmbi.com.hk Macau gaming:13.8% yoy GGR growth in 2M26. See below. Cyrena Ng, CPA吳蒨瑩(852) 3900 0801cyrenang@cmbi.com.hk ARAMCO:Saudi Aramco halted operations at Saudi Arabia’s largest oilrefinery at Ras Tanura on the Persian Gulf coast, with a capacity of 550kbarrels per day, yesterday as a precaution after a drone strike. ARAMCOswere unchanged this morning. Yujing Zhang张钰婧(852)3900 0830zhangyujing@cmbi.com.hk Trading desk comments交易台市场观点  Yesterday,Asian IG spaceopened 5-10bps wideron selling flows amidescalatingUS-Iran tensions, but spreads recovered 1–3bps as sentimentstabilized.See our quick thoughtsyesterdayon US-Israel’s bombing againstIran. Long-end KSA/QATAR/ARAMCO leaked 1.0–1.9pts and the recent newissues ADGB/QIBKQD were a touch softer amid heavy selling flows afterLondonopened.In KR space,5–10yr corporate bonds of HYNMTR/POHANG/LGENSO/HYUELE were marked 3–8bps wider amid light flows.Front-end financial and quasi-sovereign FRNs WOORIB/KHFC/EIBKORwere 1–2bps wider. The rest of Asian FRN space wasresilient. We saw blocktwo-way trading on SUMITR 31s FRN and Chinese accounts buyingCCAMCL FRNs.In HK, NWDEVLs dropped 0.3-3.5pts,and VDNWDLs were0.5-0.9pt lower. See our commentsyesterdayon NWD’s weaker 1HFY26results. FAEACO 12.814 Perp/LIFUNGs were 0.5-1.5pts weaker. The Macaugaming complex were 0.1-0.5pt lower. See comments below on Macaugaming GGR. In Chinese properties, VNKRLE 27’ and 29’ were down by1.6pts. LNGFOR 27-32 leaked 0.7-1.9pts. In SE Asian space, GLPSPs weredownby 0.7-1.5pts.VEDLN 28-33s were 0.2-1.1pts lower.INDYIJ29/MEDCIJ 26-30 and the ReNew Energy complex lost 0.1-0.6pt.YankeeAT1s were down another 0.8-1.0pts in the long end, and lost 0.4-0.8ptin thefront end and belly at London open. We saw better-selling flows from Asianmorning session into London session, before dip buyers emerged to buy thefront end of the curve and some short covering interests appeared for thelong end, bringing the space back 0.1-0.3pt from intraday lows. Meanwhile,insurancesubs were 0.4-0.8pt weaker.Elsewhere,the LGFV spaceremained largely stable, despite flows skewing towards better selling. Last Trading Day’s Top Movers Marco News Recap宏观新闻回顾 Macro–S&P (+0.04%), Dow (-0.15%) and Nasdaq (+0.36%) were mixed on Monday. S&P Global ManufacturingPMI Feb’26 was 51.6, higher thanthe market expectation of 51.2. ISM Manufacturing PMI/Prices Feb’26 was52.4/70.5, higher than the market expectation of 51.7/60.6, respectively. UST yield was higher on Monday.2/5/10/30 year yield was at 3.47%/3.62%/4.05%/4.70%. Desk Analyst Comments分析员市场观点 Macaugaming: 13.8% yoy GGR growth in 2M26 InFeb’26, Macau’s gross gaming revenue (GGR) increased 4.5% yoy to MOP20.6bn, the highest Feb figuresince 2019.The sustained recovery reflects the continuous recovery of tourist visitation after COVID. Therewere 1.6mn visitors during the CNY holiday this year, increased from 1.3mn in 2025.Cumulatively, the GGRin 2M26increased 13.8% yoy to MOP43.3bn, represented 86.0% of pre-COVID level in 2019. Macau government set GGR target of MOP236bn in 2026. The target appears to be conservative based on thegrowth momentum in 2025 and 2M26. GGR in 2025increased 9.1% to MOP247.4bn, thanks to the 15%increase in tourist arrival to the record high of 40.1mn. The GGR in 2025 is equivalent to 84.6% of pre-COVIDlevel in 2019, and exceeded its revised forecast of MOP228bn. The 2026 forecast translates into a4.5% GGRdecline in 2026 from the actual level in 2025. As discussed before, we consider Macau gaming bonds lower-beta and good carry plays with improving creditstories despite we should see more new supply to come in view of the scheduled maturitiesand undemandingfunding costs. Our top picks within the segment remainMPELs and STCITYsgiven the growing adj. EBITDAof Melco Resorts and Studio City, as well as the more appealing risk-return profiles of MPELs/STCITYs.Wealso considerWYNMAC’27 and ‘29yield pick-up plays, trading at premium of c40-60bps over bonds of its USparent. We are neutral on MGMCHIs and SANLTDs on valuation. Offshore Asia New Issues (Priced) News and market color Regardingonshore primary issuances, there were 81 credit bonds issued yesterday with an amount ofRMB58bn. [MONGOL]Mongolia received tender instructions totaled USD703.5mn of MONGOL 26-29 [QBEAU]QBE Insurance Group will acquire the remaining 51% of Indian JV Raheja QBE for INR3.2bn(cUSD36mn) [RIOLN]Rio Tinto withdrew offer of a premium of USD250 per ton for second-quarter aluminum supply forJapanese client amid Iran war [SOFTBK]SoftBank-owned PayPay plans t