Xin Hua Cai Jing·2025-10-09 08:53Core Viewpoint - The bond market showed signs of recovery after the National Day holiday, with government bond futures rising across the board and interbank bond yields declining by 1-2 basis points [1][2]. Market Performance - Government bond futures closed higher, with the 30-year main contract up 0.46% at 114.530, the 10-year main contract up 0.15% at 108.045, the 5-year main contract up 0.07% at 105.730, and the 2-year main contract up 0.02% at 102.394 [2]. - Major interbank bond yields generally decreased, with the 30-year government bond yield down 1.25 basis points to 2.117%, the 10-year policy bank bond yield down 0.65 basis points to 1.956%, and the 10-year government bond yield down 1 basis point to 1.773% [2]. Liquidity and Monetary Policy - The central bank announced a net withdrawal of 14,513 billion yuan in a single day, indicating a seasonal widening of liquidity gaps in October [1][4]. - The central bank conducted a 61.2 billion yuan reverse repurchase operation at a fixed rate of 1.40%, with a total of 20,633 billion yuan in reverse repos maturing on the same day [4]. - The central bank's announcement of a buyout reverse repurchase operation before the holiday signals a commitment to maintaining ample liquidity in the banking system [4]. Institutional Insights - Huatai Securities believes that the fundamentals and supply conditions are favorable for bonds in October, with stable liquidity and potential for interest rate cuts and bond purchases [7]. - CITIC Securities notes that seasonal cash demand and increased fiscal deposits may lead to a significant liquidity gap, prompting the central bank's actions to signal a supportive monetary policy [7].