Credit bond trading activity decreased in October, reducing the likelihood of credit spread narrowing.

The trading volume of credit bonds decreased in October, possibly due to holiday effects and expectations of interest rate fluctuations. The characteristics of corporate bond trading show a trend towards higher grades and shorter terms, while the characteristics of bonds issued by local government financing vehicles remain relatively stable. With the central bank resuming the buying and selling of government bonds, credit bonds have shown strength and credit spreads have narrowed. Looking ahead, the bond market is facing increasing adjustment pressure, and the possibility of further compression of credit spreads is reduced. Statistics show that the total turnover in the secondary bond market in October was 29,720.106 billion yuan, a year-on-year increase of 3.32% and a month-on-month decrease of 20.21%.