news flash·2025-08-04 00:17Core Viewpoint - The bond market has stabilized after recent adjustments, influenced by the conclusion of the Central Political Bureau meeting and the US-China economic talks in Stockholm [1] Group 1: Market Conditions - The Ministry of Finance's decision to resume VAT collection on government bonds and local bonds may lead to a noticeable effect in the market next week, particularly favoring older bonds [1] - The current AAA medium-short bond credit spread has recovered to around 22 basis points, reflecting a relative stability within the recent 20-30 basis points fluctuation range [1] Group 2: Institutional Behavior - Banks continue to exhibit a selling trend, while the buying power from stable liability institutions such as insurance and wealth management is increasing [1] - The strengthening of the allocation power may lead to reduced volatility in the bond market [1] Group 3: Future Outlook - There is a tendency for the bond market to strengthen in the short term, with attention on new directions that may arise from subsequent incremental news [1]