Fixed Income Daily Market Update
CMBI Credit Commentary Fixed Income Daily Market Update固定收益部市场日报 Asian IG space was 1-5bps wider this morning amid quiet flows. GARUDA31 lost 1.3pts. SOFTBK 35-36s were 0.6-0.9pt lower. VNKRLE 27/EHICAR26 gained 0.2pt. GLPSP 4.6 Perp was 0.2pt higher. Glenn Ko, CFA高志和(852) 3657 6235glennko@cmbi.com.hk Gross USD bonds issuance:Asia Pacific gross USD bonds issuancedecreased 2.7% yoy in 5M26. See below. Cyrena Ng, CPA吳蒨瑩(852) 3900 0801cyrenang@cmbi.com.hk FRESHK:Far East Horizon fully converted USD250mn FRESHK 0 06/15/26into ordinary shares. FRESHKs were unchanged in spreads amid smallbetter buying from AMs. Trading desk comments交易台市场观点 Yujing Zhang张钰婧(852)3900 0830zhangyujing@cmbi.com.hk Last Friday inChinese/HK IG space, long-end BABA widened 3-5bps,MEITUA curve widened 1-3bps, and XIAOMI 30-31s traded 3-4bps wider.The recent new issue HKTGHD 36 closed 2bps wider amid better sellingfrom Chinese RMs. Financials T2s likeBNKEA 32-34s widened 2bps. Onthe other hand, the HAOHUAs closed unchanged with mixed two-way flowson HAOHUA 29-30s. In Chinese/HK properties,ROADKG 28-30s lost 1.9-2.3pts. Road King Infrastructure’s debt restructuring will likely experiencemore delay as opposing bondholders consider the RSA not acceptable andare trying to push for winding up of New Select/RKE. In the rest of theChinese/HK properties, NWDEVL/VDNWDL Perps were 0.2pt lower to 0.3pthigher. NWD will defer distribution on NWDEVL 10.131 Perp and NWDEVL5.25 perp to next distribution payment dates as expected. LNGFOR 27-32were unchanged to 0.3pt higher. VNKRLE 27’ and 29’ gained 0.1pt.KRcredits closed largely unchanged, though we saw small profit taking onHYUELE 29-33s.In SE Asian space,OCBCSP 35-36s tightened 1-2bps,whilethe EXIMBK curve traded 1-3bps wider.SMCGL Perps wereunchanged to 0.2pt lower. See our commentson SMCGLlast Friday. In AU,NAB/ANZ/WSTP IG credits were 1-3bps wider on the back of Chinese RMselling. As for Japanese and European AT1s,long-end issues closedunchanged to 0.3pt lower. In LGFV space, we saw better selling across theUSD creditcurve. Non-LGFV CNH papers retraced by 0.3-0.4pt amid profit-taking flows from AMs. Last Trading Day’s Top Movers Marco News Recap宏观新闻回顾 Macro–S&P (-2.64%), Dow (-1.35%) and Nasdaq (-4.18%) wereloweron last Friday. US May’26 NonfarmPayrolls were +172k, higher than the market expectation of +85k. Unemployment rate was 4.3%, in line with themarketexpectation.USTyield were higher on last Friday.2/5/10/30 year yield was at 4.17%/4.29%/4.55%/5.01%. Desk Analyst Comments分析员市场观点 Gross USD bonds issuance:Asia Pacific gross USD bonds issuance decreased 2.7% yoy in 5M26 Gross USD issuance of Asia Pacific increased 18.2% yoy in May’26 In May’26, the gross issuance of USD bonds of Asia Pacific increased 18.2% yoy to USD26.9bn, after the astrong recovery in Apr’26 from a sharp decrease in Mar’26.Australia (USD8.9bn), China (USD4.8bn), andHong Kong (USD2.7bn) were among the largest issuers. 78.8% of the gross issuance amount were IGs.Bysector, financials (68.0%), sovereigns (9.3%) and communications (5.2%) were among the largest issuers. Cumulatively, the gross issuance of USD bonds of Asia Pacific decreased 2.7% yoy to USD166.7bn in 5M26.Japan (USD47.4bn), Australia(USD32.1bn), and South Korea (USD25.4bn) were among the largest issuers.84.3% of the gross issuance amount were IGs. Financials (66.1%), sovereigns (7.4%) and metals & mining(4.4%) were among the largest issuing sectors. Gross USD issuance of Asia ex-JP, AU & NZ increased 2.9% in May’26 In May’26, the gross issuance of USD bonds of Asia ex-JP, AU & NZ increased 2.9% yoy to USD15.9bn. China(USD4.8bn), Hong Kong (USD2.7bn), and Indonesia (USD2.3bn) were among the largest issuers. 65.9% of thegross issuance amount were IGs.By sector, financials (49.9%), sovereigns (15.7%) and communications(8.8%) were among the largest issuers. Cumulatively, the gross issuance of USD bonds of Asia ex-JP, AU & NZ decreased by 20.0% yoy to USD84.3bnin 5M26. South Korea (USD25.4bn), China (USD20.7bn) and Indonesia (USD8.0bn) were among the largestissuers. 74.6% of the gross issuance amount were IGs. Financials (50.7%), sovereigns (14.6%) and consumerdiscretionary (6.1%) were among the largest issuing sectors. Gross USD issuance of China fell 46.0% yoy in May’26 In May’26, the gross issuance of USD bonds of China totaled USD4.8bn, dropped 46.0% yoy.IGs, HYs, andunrated contributed 82.4%, 9.0% and 8.6% of the gross issuance amount, respectively.By sector, financials(42.9%), metals & mining (26.4%) and LGFVs (20.8%) were among the largest issuers. Cumulatively, gross issuance of USD bonds of China totaled USD20.7bn in 5M26, representing a 53.1% yoydecrease. IGs, HYs, and unrated contributed 73.1%, 8.6% and18.3% of the gross issuance amount,respectively. Financials (57.9%), LGFVs (16.7%) and real estate (7.8%) were among the largest issuing sectors. Gross USD issuance of Middle East decreased 11.3% yoy in May’26 In May’26, the gross