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[Bond Issuance Momentum Remains Strong, Widening Franco-German Interest Rate Spread Draws Attention] ⑴ Global bond issuance grew by approximately 7% year-on-year in the first half of the year, with public sector issuance remaining largely flat and corporate bond issuance increasing by 10%. Financial institutions performed particularly well, with issuance volume nearly 30% higher than the same period last year, becoming the main driver of the market. ⑵ High liquidity and investor demand jointly supported bond market activity. This, coupled with the postponement of some issuance plans from last year to this year and the concentrated release of refinancing demand for maturing debt, collectively boosted supply in the first half of the year. ⑶ Societe Generale expects a more complex macroeconomic environment in the second half of the year, but the pace of issuance will not slow significantly. Refinancing transactions, M&A financing, and investment plans by large technology companies will continue to provide support, maintaining a constructive view on the overall credit market. ⑷ The institution believes that credit spreads may widen slightly in the second half of the year, but robust corporate profits in the Spanish market are expected to keep spreads near current levels. However, geopolitical tensions may trigger temporary periods of tension. ⑸ At the central bank policy level, inflationary pressures in Europe have not subsided. Fiscal spending and energy costs may put the European Central Bank at risk of another interest rate hike, while the Federal Reserve is expected to maintain interest rates unchanged in the coming months. The divergence in policy paths warrants attention. (6) Spanish government bonds outperformed French bonds. With the French election approaching, yields on Spanish bonds face upward pressure. The spread between 10-year Spanish and German bond yields remained around 40 basis points, while the Franco-German yield spread has the potential to widen further.