APAC Cross Regional Credit Weekly: Spreads stabilizing with yields remaining at high levels

Research evidence excerpt

APAC Cross Regional Credit Weekly: Spreads stabilizing with yields remaining at high levels

J P M O R G A N Asia Pacific Credit Research

21 July 2026

APAC Cross Regional Credit

Weekly

Spreads stabilizing with yields remaining at high levels

• JULI spreads widened by 2bp to 91bp over the week. The index yield rose Asia Pacific Credit Research

AC by 1bp w/w to 5.64% (+14bp MTD; 24bp above the YTD average). Matthew Hughart

• HG fund flows moderated to $6.5bn of inflows (-38% w/w), the lowest in (852)matthew.hughart@jpmorgan.com2800-6518

11 weeks and below the four-week average of $9.2bn. The slowdown was led J.P. Morgan Securities (Asia Pacific) Limited

by ETFs, where inflows declined 41% w/w to $4.7bn, while Mutual Fund

Emma Xing

inflows also fell 29% w/w to $1.8bn. Looking ahead, our US team thinks higher (852) 2800-8727

yields and a modestly steeper UST curve, as the market pushes back the odds emma.xing@jpmorgan.com

of a Fed rate hike, should support demand. J.P. Morgan Securities (Asia Pacific) Limited

• Last week, $46bn of gross issuance was priced against $52bn of Soo Chong Lim

reinvestment income. Our US HG team believes this high reinvestment (852) 2800-7387

soochong.lim@jpmorgan.com

income was a key underpinning for demand over the past week, especially in J.P. Morgan Securities (Asia Pacific) Limited

light of the lighter fund inflows. North America Credit Research

• Our US HG team estimates that reinvestment income will moderate to Nathaniel Rosenbaum, CFA

$31bn this week, which is 6% below the July weekly average and 7% above (1-212) 834-2370

the 2026 weekly average. Supply likely stays on the lighter side for the next nathaniel.rosenbaum@jpmorgan.com

two weeks between earnings blackouts and the Fed meeting at the end of the J.P. Morgan Securities LLC

month.