A chart of the daily bond market
Chart Of The Day
Is the US economy gradually entering "Japanization"?
Us 10-year Treasury yields are now near an all-time low, while the fiscal deficit ratio is likely to rise to peacetime highs.
The Japanese economy has long been on the road to relying entirely on the expansion of Japanese government spending to maintain its stability. Over the past 20 years, the Japanese economy has fallen into a state of low growth, low inflation and low interest rates. While the Japanese government uses these resources to distribute welfare, expand infrastructure and so on, private demand continues to languish.
Review of yesterday's market
Market Recap
Market Overview:There are more than 3 million confirmed cases and more than 210000 deaths worldwide. The cumulative number of confirmed cases in the United States has also reached 1 million, with a total of more than 56000 deaths. European countries announced the economic release road map, the US state of New York also made a restart plan, but Britain maintained the blockade measures to guard against the emergence of a second wave of peaks. WTI futures fell 30% at one point, with the largest oil ETF selling all its June WTI contracts. The European Union is understood to be further relaxing banking capital rules. The China Securities Regulatory Commission openly solicited opinions on the reform of the gem and the pilot registration system.
In terms of Chinese dollar bonds, the investment grade index of Chinese dollar bonds fell 0.17% yesterday, while the high yield index rose 0.29%. The US high yield index fell 0.12 per cent and the investment grade index fell 0.02 per cent.
Table 1: Chinese and US dollar debt index (IBOXX)
Note: each index reached rebase to 100 at the beginning of this year.
In terms of high returns:Active note trading is relatively deserted, the overall volatility of the market is not large. Among them, Wanda suffered the biggest decline, with 2024 maturing bonds falling by 3pt. Evergrande 2022 maturing bonds rose slightly 1pt. HSBC Holdings PLC perpetual debt rises 0.66pt again.
Investment grade:The spread of Chinese investment grade active coupons widened on average, 4bps. SOE name, State Grid narrowed 3-5bps, Petrochina Company Limited, CNOOC, Sinochem Group broadened 3-5bps. Technology name, spread widens slightly 2-5bps. In the financial industry, all the major banks have broadened their 5bps. On the property side, interest rate spreads are almost unchanged.
I. Overview of the global market
Global Market Review
Table 2: global performance of large categories of assets (updated this morning)
Table 3 (1): performance of major interest rate varieties in China and the United States (updated this morning)
Yesterday:
II. Secondary market for US dollar debt
Secondary Market Review
1. Secondary trading of active coupons
(1) Investment grade activity coupons
The spread of Chinese investment grade active coupons widened on average, 4bps. SOE name, State Grid narrowed 3-5bps, Petrochina Company Limited, CNOOC, Sinochem Group broadened 3-5bps. Technology name, spread widens slightly 2-5bps. In the financial industry, all the major banks have broadened their 5bps. On the property side, interest rate spreads are almost unchanged.
Table 4: ups and downs of investment grade active bonds
(2) High-yield activity coupons
In terms of high returns, active coupon trading is relatively deserted. Among them, Wanda suffered the biggest decline, with 2024 maturing bonds falling by 3pt. Evergrande 2022 maturing bonds rose slightly 1pt. HSBC Holdings PLC perpetual debt rises 0.66pt again.
Table 5: ups and downs of high-yield active bonds
