Demand For USD Has Been Reignited【CSOP Fixed Income Weekly】

Weekly Performance Checkpoint

【SRT】

SRT’s losses were led by industrial, office and retail subsectors, as well as CICT, FLT and CLINT by individual REITs. FLT fell after being cut to underweight at JPM.

【MMF】

Swap market pricing less than 50% chance of a Fed rate cut in December. We expect CSOPUMM to continue to deliver stable yield in the near term. As of 20241122, the fund has net yield at 4.69%. ^

Source: CSOP, Bloomberg, JP Morgan as of 20241122. ^ 7-day net yield is calculated based on calendar days and NAVs in 5-decimal.

【CN】

Last week, CGB price was gained slightly in CNY but fell slightly in USD terms.

YTD as of 20241121, the CYC/CYB rose +5.45% in CNY and gained +3.29% in USD*.

Source: CSOP, FTSE Russell, Bloomberg as of 20241121. * CYC/CYB/CYX USD NAV is converted based on benchmark FX, subject to rounding error ** Pro rata of annual TER (26bp) is added back to ETF based on actual days/365.

Global Market Outlook

【CN】LPR Is To Remain Unchanged Within the Year

• Data from the central bank showed that as of end October, foreign institutions held 4.25 trillion yuan of interbank market bonds.

• Public budget revenue fell 1.3% YoY from January to October.

• According to the Securities Times, the Ministry of Finance is formulating a specific quota plan to issue new special bond quotas in 2025.

• Following Shanghai and Beijing, Shenzhen has also abolished the standards for ordinary housing and non-ordinary housing.

• China Securities Journal quoted experts saying that LPR is to remain unchanged within the year, but there is room for a cut next year.

• The Ministry of Commerce has issued measures for stable growth in foreign trade, increasing financial support for foreign trade enterprises.

【SG】Revising SG’s Growth Forecast Upwards

• Singapore revised its growth forecast upwards after its economy performed better than anticipated, expanding 5.4% from a year ago in Q3.

【US】Initial Jobless Claims Came In Lower At 213k

• Last week, market participants scrutinized the prospective Treasury Secretary nominee, for potential shifts in treasury debt strategy. Trump has financier Kevin Warsh in mind, though it is good to note that Trump's known indecisiveness.

• US labor data was mixed as initial jobless claims came in lower at 213k than 220k that was expected while continuing claims rose to a three-year high of 1908k. Initial claims could stay low through holiday season prior to rising from job-cut announcements by Boeing that could drive continuing claims up further.

 Source: CSOP, Bloomberg, JP Morgan as of 20241122.

• Bloomberg Economics’ Fedspeak index has become more hawkish after the November Fed rate cut, indicating officials are taking a more measured position towards additional easing, driven especially by Fed Chair’s Nov 14 remarks emphasis patience given US’ economic strength and October inflation data showing a “bigger bump” than expected.

 Source: CSOP, Bloomberg, JP Morgan as of 20241122.

• Treasury's monthly Treasury International Capital (TIC) data revealed that foreign investors bought $77bn in long-term treasuries in September, marking the highest monthly net purchases since February, despite a $5bn net sell-off by foreign official investors.

• Market participants were scrutinizing the prospective Treasury Secretary nominee, for potential shifts in treasury debt strategy. Trump has financier Kevin Warsh in mind, though it is good to note that Trump's known indecisiveness.

Disclaimer

The investment product(s), as mentioned in this document, is/are registered under section 286 of the Securities and Futures Act (Cap. 289) of Singapore (the “SFA”). This material and the information contained in this material shall not be regarded as an offer or solicitation of business in any jurisdiction to any person to whom it is unlawful to offer or solicit business in such jurisdictions. This document is not to be construed as recommendations to buy/sell any above-mentioned securities, or any securities in the above-mentioned sectors or jurisdictions.

CSOP Asset Management Pte. Ltd. (“CSOP”) which prepared this document believes that information in this document is based upon sources that are believed to be accurate, complete, and reliable. However, CSOP does not warrant the accuracy and completeness of the information and shall not be liable to the recipient or controlling shareholders of the recipient resulting from its use. CSOP is under no obligation to keep the information up to date. The provision of this document shall not be deemed as constituting any offer, acceptance, or promise of any further contract or amendment to any contract. The information herein shall not be disclosed, used, or disseminated, in whole or part, and shall not be reproduced, copied, or made available to others without the written consent of CSOP.

Advice should be sought from a financial adviser regarding the suitability of the investment and/or investment product before making an investment. Investment involves risk. The value of investments, and the income from them, can go down as well as up and an investor may get back less than the amount invested. Past performance is not necessarily indicative of future performance. Investor should read the prospectus and product highlights sheet, which can be obtained on CSOP website or authorized participating dealers, before deciding whether to invest. This document has not been reviewed by the Monetary Authority of Singapore.

Index Provider Disclaimer

SRT

The CSOP iEdge S-REIT Leaders Index ETF is not in any way sponsored, endorsed, sold or promoted by Singapore Exchange Limited and/or its affiliates (collectively, “SGX”) and SGX makes no warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the iEdge S-REIT Leaders Index and/or the figure at which the iEdge S-REIT Leaders Index stand at any particular time on any particular day or otherwise. The iEdge S-REIT Leaders Index are administered, calculated, and published by SGX. SGX shall not be liable (whether in negligence or otherwise) to any person for any error in the CSOP iEdge S-REIT Leaders Index ETF and the iEdge S-REIT Leaders Index and shall not be under any obligation to advise any person of any error therein. “SGX” is a trademark of SGX and is used by CSOP under license. All intellectual property rights in the iEdge S-REIT Leaders Index vest in SGX.

CYC/CYB/CYX

The ICBC CSOP FTSE Chinese Government Bond Index ETF (the “ETF”) has been developed solely by CSOP Asset Management Pte. Ltd. The ETF is not in any way connected to or sponsored, endorsed, sold, or promoted by the London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). FTSE Russell is a trading name of certain of the LSE Group companies. All rights in the FTSE Chinese Government Bond Index (the “Index”) vest in the relevant LSE Group company which owns the Index. FTSE® is a trademark of the relevant LSE Group company which own the Index and is used by any other LSE Group company under license. The Index is calculated by or on behalf of FTSE International Limited or its affiliate, agent, or partner. The LSE Group does not accept any liability whatsoever to any person arising out of (a) the use of reliance on or any error in the Index or (b) investment in or operation of the ETF. The LSE Group does not accept any liability whatsoever to any person arising out of the use of the ETF or the underlying data. The LSE Group makes no claim, prediction, warranty, or representation either as to the results to be obtained from the ETF or the suitability of the Index for the purpose to which it is being put by CSOP Asset Management Pte. Ltd.