CITIC Securities Co., Ltd.(SH:600030) Xin Hua Cai Jing·2025-10-22 09:15Market Overview - The bond market continued to consolidate on October 22, with most government bond futures slightly rising, and interbank bond yields fluctuating within 0.5 basis points [1][2] - The People's Bank of China conducted a net injection of 94.7 billion yuan in the open market, leading to a decline in funding rates [1][6] Bond Futures Performance - The closing prices for government bond futures showed an increase: the 30-year main contract rose by 0.10% to 115.61, the 10-year contract increased by 0.02% to 108.145, and the 5-year contract went up by 0.04% to 105.735 [2] - The yields on various government bonds showed slight declines, with the 30-year government bond yield down by 0.1 basis points to 2.179% [2] International Bond Market Trends - In North America, U.S. Treasury yields collectively fell, with the 2-year yield down by 0.64 basis points to 3.445% and the 10-year yield down by 2.49 basis points to 3.953% [3] - In Asia, Japanese bond yields mostly decreased, with the 10-year yield down by 0.7 basis points to 1.648% [4] - In the Eurozone, yields on 10-year bonds also fell, with French yields down by 2 basis points to 3.341% and German yields down by 2.5 basis points to 2.550% [4] Primary Market Activity - Agricultural Development Bank's financial bonds had the following yields: 1.5091% for 1.074 years, 1.7911% for 3 years, and 1.9537% for 10 years, with bid-to-cover ratios indicating strong demand [5] Funding Conditions - The central bank conducted a 138.2 billion yuan reverse repo operation at a rate of 1.40%, with a net injection of 94.7 billion yuan after accounting for maturing repos [6] - Short-term Shibor rates mostly declined, with the overnight rate rising slightly by 0.1 basis points to 1.318% [6] Institutional Insights - Huatai Fixed Income noted that the current operation mechanism for policy financial tools is similar to 2022, with a broader focus on funding areas and an initial scale of 500 billion yuan, potentially expanding further [7] - Dongwu Fixed Income highlighted opportunities in the newly expanded Sci-Tech Bond ETF, suggesting that inclusion in the ETF could lead to price increases and create arbitrage opportunities [8] - CITIC Securities indicated that the bond market sentiment may have reached a low point, with a cautious but more positive trading approach recommended, while maintaining a neutral position [8]