Core Viewpoint - The bond market experienced volatility on October 29, with short-term instruments performing better initially, but long-term bonds weakened towards the end of the trading day. The People's Bank of China (PBOC) injected a net amount of 419.5 billion yuan into the market, indicating a focus on liquidity management and potential monetary easing [1][6]. Market Performance - The majority of government bond futures closed higher, with the 30-year main contract down 0.27% at 115.83, while the 10-year contract rose 0.13% to 108.57. The 5-year and 2-year contracts also saw slight increases [2]. - The interbank bond yield initially decreased before rising again, with the 10-year China Development Bank bond yield up 0.7 basis points to 1.8875% [2]. International Market Trends - In North America, U.S. Treasury yields showed mixed results, with the 2-year yield up 0.37 basis points to 3.486% and the 10-year yield down 0.01 basis points to 3.976% [3]. - In Asia, Japanese bond yields mostly increased, with the 10-year yield rising 0.7 basis points to 1.652% [4]. Primary Market Activity - Agricultural Development Bank of China issued financial bonds with yields of 1.4811% for 1.074 years, 1.7549% for 3 years, and 1.9480% for 10 years, with bid-to-cover ratios indicating strong demand [5]. Liquidity and Funding - The PBOC conducted a 557.7 billion yuan reverse repo operation at a fixed rate of 1.40%, resulting in a net injection of 419.5 billion yuan after accounting for maturing repos [6]. - Short-term Shibor rates declined across the board, with the overnight rate down 5.5 basis points to 1.414% [6]. Institutional Insights - Different institutions exhibit varying preferences for bond allocations, with banks focusing on interest rate bonds and insurance companies favoring low-risk bonds to meet liability requirements [7][8]. - The resumption of government bond trading by the PBOC is seen as a move to support fiscal efforts and enhance liquidity for financial institutions, confirming a loose monetary stance [8].
债市日报：10月29日
Xin Hua Cai Jing·2025-10-29 07:46