债市日报：7月2日

Market Overview - The bond market continued its strong performance on July 2, with interbank cash bond yields declining by approximately 1 basis point, and government bond futures closing higher across the board, particularly in the ultra-long end [1] - The central bank's open market operations resulted in a net withdrawal of 266.8 billion yuan, indicating a more relaxed liquidity environment at the beginning of the month [1][4] Bond Yield Movements - Government bond futures closed higher, with the 30-year main contract rising by 0.40%, the 10-year main contract by 0.14%, the 5-year by 0.07%, and the 2-year by 0.03% [2] - Major interbank bond yields fell, with the 30-year government bond yield down by 0.75 basis points to 1.8435%, the 10-year policy bank bond down by 0.7 basis points to 1.7110%, and the 10-year government bond down by 0.6 basis points to 1.6365% [2] Primary Market Activity - Agricultural Development Bank's financial bonds had winning yields of 1.3513% for 1.074 years, 1.6501% for 3 years, and 1.7352% for 10 years, with bid-to-cover ratios of 2.58, 4.07, and 3.24 respectively [3] - The Ministry of Finance's 28-day and 63-day government bonds had weighted average winning yields of 1.1351% and 1.2018%, with bid-to-cover ratios of 3.89 and 3.68 respectively [3] Liquidity Conditions - The central bank conducted a 7-day reverse repurchase operation of 98.5 billion yuan at a rate of 1.40%, with a net withdrawal of 266.8 billion yuan for the day [4] - Overnight pledged repo rates for deposit-taking institutions slightly decreased, remaining around 1.36%, while the 7-day pledged repo rate fell by 4 basis points [4] Institutional Insights - CITIC Securities anticipates that the third quarter may see the effects of wide credit policies materialize, which could impact bond market sentiment [5] - China International Capital Corporation (CICC) expects that the scale of wealth management products will continue to grow in the context of declining deposit rates, maintaining a positive outlook for the bond market in the second half of the year [5]