Industrial and energy names lead rally in ATF indexes

Indexes rally in step with government bonds

Industrial and energy names lead rally in ATF indexes
The ATF China Bond 50 Index rose by 0.03% on Monday, while three of the four sub-gauges also jumped by even larger amounts.

(ATF) The ATF indexes rallied on Monday in tandem with Chinese government bonds, with the benchmark China Bond 50 index rising 0.03%, and the ATF ALLINDEX Corporate, Enterprise and Financials sub-gauges surging 0.07%, 0.07% and 0.04% respectively.

Only the ATF ALLINDEX Local Government recorded a loss, falling 0.08% due to the bonds of the People’s Government of Hunan slipping 2.66%.

Concurrently, the yield on China’s 10-year sovereign paper fell seven basis points to 3.2% and the CSI lost 0.58% as China kicked off the Fifth Plenum of the 19th Communist Party Congress in Beijing on Monday. At this event, which runs for four days, senior leaders will discuss China’s economic and social development targets for 2021-2025.

Energy and industrial names recorded the biggest gains of the sub-gauges, with the price of China Merchants bonds climbing 0.29% (for a yield decline of 2.4%) and PetroChina paper rising 0.11% (for a yield decline of 0.02%), boosting the ATF ALLINDEX Enterprise gauge. The bonds of each traded last on 13 October and 30 September.

Within the ATF ALLINDEX Corporates, Sino-Ocean and Wuxi Municipal Development bonds rose 0.04%, with their yields dropping 0.07% and 0.06% respectively. Their bonds last changed hands on 24 September and 13 October.

Meanwhile, financial names led gains in the benchmark index, with the prices of Agricultural Development Bank of China and China Zheshang Bank rising 0.09% (for a yield decline of 0.3%) and 0.11% (for a yield decline of 1%). The bonds were last traded on 22 October and 16 October.

China Zheshang is also a constituent of the ATF ALLINDEX Financial and led the gains of that index.

China bonds ATF indexes China Bond50 Bond market