Fixed Income Daily Market Update

CMBI Credit Commentary Fixed Income Daily Market Update固定收益部市场日报 The new ICBCAS Float 29 tightened 1bp from RO at SOFR+38 this morning.Asia IG space recovered and tightened 5bps, though there were still profit-taking flows on JP FRNs. GLPSP 4.25/4.6 Perps recovered 1.3-1.4pts.NWDEVL 10.131 Perp/FAEACO 12.814 Perp/LNGFOR 32 were 0.6-0.7ptlower. Glenn Ko, CFA高志和(852) 3657 6235glennko@cmbi.com.hk Gross USD bonds issuance:Asia Pacific Gross USD bonds issuanceincreased 24.6% yoy in 2M26. See below. Cyrena Ng, CPA吳蒨瑩(852) 3900 0801cyrenang@cmbi.com.hk China Economy:CPI in Feb’26 rebounded to 1.3% yoy thanks to the baseeffectand surging tourism price during holidays.PPI beat marketexpectation driven by surging prices in upstream sectors including crude oiland non-ferrous metals, while PPI of consumer goods remained subdued.China appears to be edging out of deflation. See comments from CMBIeconomic research below. Yujing Zhang张钰婧(852)3900 0830zhangyujing@cmbi.com.hk Trading desk comments交易台市场观点 Yesterday,benchmark POE corporate and financial names acrossCN/HK/JP/KR traded 5-7bps wider. Panic selling appeared among higherbetas like FRESHK/ZHOSHK and drove the bonds to 20-30bps wider. Wealsosaw selling flows on 4-6yr FRNs issued recently like HSBC/SUMIBK/SUMITR. Selling pressure was more subdued in various quasi-sovereign bonds in KR and LINREI/HKE in HK. These widened only 1-5bps.NWDEVL/VDNWDL complex were 0.1-1.3pts lower, while FAEACO 12.814Perp rose 1.1pts. As for other higher-yielding names in the region, FOSUNI26-29 lost 0.1-2.4pts after profit warning. WESCHI 28-29 leaked 0.9pt. InChinese properties, FUTLAN 28/FTLNHD 26-29 were down by 0.1-0.5pt.See our commentsyesterdayon Seazen in relation to the results of tenderoffer and announcement of plan to issue commercial REITs. LNGFOR 27-32dropped 1.9-2.6pts after profit warning and further deterioration of 2H25results. In SE Asian space, PTTGC Perps were down another 1.3-1.8pts afterFitch revised the rating outlook of PTT Global Chemical to negative fromstable while affirmed the company’s BBB-rating. TOPTB 6.1 Perp also lost1.3pts. GLPSPs dived 1.8-2.8pts. In JP space, long-end SOFTBKs leaked1.2-1.4pts. Japanese and Yankee AT1s and insurance subs dropped byanother 1.0-2.0pts, as selling accelerated especially across on-the-run issuesand long-end bonds of HSBC/UBS/INTNED/BNP, whereas a small numberof RMs/prop desks would pick up the papers at cheaper prices. In the MiddleEast, FABUH/BSFR/ARAMCO were 0.2-0.7pt lower. In LGFVs, more HFs were selling short-dated papers in attempt to recyclecash to buy the dip elsewhere. Having said that, the space overall remainedresilient from the macro shock as bonds remained supported by Chinese RMbuyers across USD and CNH papers. Last TradingDay’s Top Movers Marco News Recap宏观新闻回顾 Macro–S&P (+0.83%), Dow (+0.50%) and Nasdaq (+1.38%) were higher on Monday. Brent and West TexasIntermediate both plunged 10% to less than USD90 a barrel again. Japan’s 4Q25 GDP increasedby +0.3% qoq,higher than the market expectation of +0.1% qoq. UST yield bull flattened on Monday. 2/5/10/30 year yield wasat 3.56%/3.71%/4.12%/4.72%. Desk Analyst Comments分析员市场观点 Gross USD bonds issuance:Asia Pacific Gross USD bonds issuance increased 24.6% yoy in 2M26 Gross USD issuance of Asia Pacificincreased 24.6% yoy in 2M26 In Feb’26, thegross issuance of USD bonds from Asia Pacific increased by 29.3% yoy to USD21.7bn. Japan(USD10.0bn), South Korea (USD4.7bn) and China (USD3.8bn) were among the top issuers. 65.5% of the grossissuance amount were IGs.By sector, financials (59.5%), sovereigns (16.1%) and materials (6.9%) wereamong the top issuers.Cumulatively, the gross issuance of USD bonds in Asia Pacific rose 24.6% yoy toUSD72.1bn in 2M26. Japan (USD20.9bn), South Korea (USD15.1bn) and China (USD9.4bn) were among thetop issuers. 81.4% of the gross issuance amount were IGs. By sector, financials (64.7%), sovereigns (12.4%)and utilities (5.5%) were among the top issuers. Gross USD issuance of Asia ex-JP, AU & NZ rose 22.1% yoy to USD42.2bn in 2M26 In Feb’26, thegross issuance of USD bonds from Asia ex-JP, AU & NZ increased by 47.4% yoy to USD11.2bn.South Korea (USD4.7bn), China (USD3.8bn) and Thailand (USD1.0bn) were among the top issuers. 46.2% ofthe gross issuance amount were IGs.By sector, financials (44.0%), sovereigns (31.2%) and communications(8.9%) were among the top issuers.Cumulatively, the gross issuance of USD bonds in Asia ex-JP, AU & NZincreased by 22.1% yoy to USD42.2bn in 2M26. South Korea (USD15.1bn), China (USD9.4bn) and Indonesia(USD4.2bn) were among the top issuers. 73.0% of the gross issuance amount were IGs. By sector, financials(47.5%), sovereigns (21.2%)and utilities (8.3%) were among the top issuers. Gross USD issuance of China increased 2.7% yoy in 2M26 to USD9.4bn In Feb’26,the gross issuance of USD bonds from China totaled USD3.8bn, decreased 12.1% yoy.IGs, HYs,and unrated contributed 65.9%, 20.9% and 13.2% of the