Fixed Income Daily Market Update

CMBI Credit Commentary Fixed Income Daily Market Update固定收益部市场日报 Asia IG space was unchanged to 2bps tighter on light flows this morning.GLPSP Perps/GLPSP 28 rose 0.8-2.0pts and GLPCHI 29 up 0.4pt. GLPreleased its FY25 results last Friday with core underlying EBITDA jumpedc80%yoy to USD2.3bn. CKINF Perps/SHUION 29 were 0.2pt higher.HYSAN 29/PTTGC 52/TOPTB 43 down 0.5-0.6pt. Glenn Ko, CFA高志和(852) 3657 6235glennko@cmbi.com.hk VEDLN:Record revenue in FY26, mainly driven by volume growth and costreduction. VEDLN 28-33 were unchanged this morning. See below. Cyrena Ng, CPA吳蒨瑩(852) 3900 0801cyrenang@cmbi.com.hk China Economy:Global AI boom leads to stronger exports cycle. CMBIraised 2026 goods export growth forecast to around 8-9% from 4% andimport growth to around 12-14% from 8%,while expecting the trade surplusto narrow from the 2025 high. USD/RMB may stay firm around 6.8 in 2Q26beforeedging down to 6.78 by year-end.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 Last Friday,the new HKINTL 31s outperformed with 7bps tightening. We sawthe new BNKEA 32 was under mixed two-way flows and closed largelyunchanged. Asia IG spreads were unchanged to 3bps tighter, supported bya constructive bid despite elevated rate levels. FRESHKs continued to attractreal money interests and closed unchanged. See our commentlast FridayonFEH.ZHOSHK28was3bpstighter.TaiwanlifersCATLIF/FUBON/NSINTW/SHIKON experienced a technical squeeze andtightened an additional 1-3bps on light volumes. In Korea, flows were moremixed two way.LGENSO tightened 3-5bps across the belly and long end.HYUELE remained squeezed across the '27-'31 tenors and were 2-3bpstighter. Media reported SK Hynix secured several funding offers from majorglobal technology companies that seek to secure memory chip supplies amidthe strong AI boom. On the other hand, we saw front-end Korean paperswere traded more balanced with a better-offered bias. In Japan, we saw apositive bids with private bank and real money accounts favoring NIPLIF'31s/'33s, while asset managers and PBs moved into NTT '35s and the '30/'31FRN space. JP AT1s and insurance subs were largely unchanged in a mutedsession. In SEA, spreads were unchanged to 3bps tighter, supported bybroad-based buying across the BBLTB senior and subordinated curves.European AT1s were marked down by 0.3pt, we saw occasional selling fromAM in long end issues while demand for short-dated-to-call issues persisted. In Asia HY/higher beta space, GLPSP Perps/GLPCHI 29 were 0.9-1.2pts higher. GLP core underlying EBITDAjumped 79.6% yoy to USD2.3bn in FY25, and plans to reset the coupon of GLPSP 4.5 Perp on the first couponreset date on 17 May’26 to 5yrUST+3.735%, i.e. c7.7%. Chinese properties VNKRLE ’27-’29 were 0.3-0.7pthigher. Media reported Vanke informed some holders of VNKRLE ‘27 that it has started remitting funds to payinterest. HK names CKINF 4.85 Perp down 0.5pt. HYSAN 35/LIFUNG Perp was 0.4-0.7pt higher. Macau gamingbonds were largely unchanged. See our comment on SJM’s 1Q26 resultlast Friday. Asian high-beta perps weremarked down by 0.1-0.3pt but remained fairly firm amid slight better buying flows from RM. ACENPM 4 Perp was0.6ptlower. LGFVs were overall stable amid mixed two-way flows. We saw quality IG/low-yielding papers withRM demand whilst some profit taking/switch-out selling from tactical holders on high-yielding names. On CNHfront, we saw the new HKINTL under one-way selling from institutions to sporadic retail buyers.The rest of 20-30y papers were better sold. Last Trading Day’s Top Movers Marco News Recap宏观新闻回顾 Macro–S&P (+0.84%), Dow (+0.02%) and Nasdaq (+1.17%) were higher on last Friday. US Apr’26 NonfarmPayrolls were +115k, higher than the market expectation of +65k. US Apr’26 Unemployment Rate was 4.3%,sameas the market expectation.UST yield was lower on last Friday.2/5/10/30 year yield was at3.90%/4.02%/4.38%/4.95%. Desk Analyst Comments分析员市场观点 VEDLN: Record revenue in FY26; volume growth and cost reduction as key drivers Weacknowledge Vedanta Limited (VEDL)’s good access to diversified funding channels and the improved debtmaturity profile at Vedanta Resources Ltd. (VRL) followingLMEs since Jan’24.On 5 May’26, Moody’supgraded VRL’s rating by one notch to Ba3 from B1 with positive outlook on improving earnings and cash flows. Within theVEDLN complex, we recommend a switch to VEDLN 28-29 and to take profit from VEDLN 30-31, asVEDLN 28-29 offer more attractive cash prices than the ’31 and higher yields compared to the ’30. VEDL delivered record-high revenue and EBITDA in FY26. Its revenue was up 15% yoy to INR1,740.8bn, whileEBITDA rose 29% yoy to INR559.8bn,exceeded its full year target of cINR532bn. EBITDA margin expandedto 32.2% from 28.9% in FY25. The strong performance wasdriven by record production volumes acrossaluminum, alumina, mined metal, and IOB pig iron, with the cost of production (COP) for both alumi