Oriental Credit Rating: The bond market in September may generally maintain a range-bound oscillation pattern, with the allocation strength for credit bonds weakening seasonally.

East Jincheng released a report on September 14 stating that, affected by the "half-year report supplementation," credit bond supply in September will decline seasonally, and net financing will decrease month-on-month; on the demand side, under the pressure of quarter-end funds returning to the balance sheet, the strength of wealth management products increasing allocations to credit bonds will weaken. Combined with the contraction in the open scale of existing amortized-cost bond funds and the crowding out of bond allocation funds by the surge in government bond issuance, credit bond demand in September will also decline somewhat. East Jincheng stated that in September the bond market may overall maintain a range-bound oscillation pattern, the seasonal weakening of credit bond allocation strength, and credit spreads being at historical lows with a thin safety cushion, spreads are more likely to rise than fall. Short-end credit bond spreads face pressure to widen slightly amid funding disturbances, while medium- and long-end spreads may oscillate within a narrow range supported by amortized bond funds, and valuation fluctuations for bonds of weak-qualification issuers may be greater. For credit bond allocation, it is still recommended to focus on a coupon strategy in medium- and high-rated bonds. For high-quality issuers, duration can be extended to 3-5 years, with key attention to varieties that offer both coupon income and liquidity; at the same time, the funding environment in September is expected to maintain narrow-range oscillation, the spread space will remain at a low level, and it is not advisable to further increase leverage.