债市日报：11月4日

Core Viewpoint - The bond market continues to show weakness, with interbank bond yields slightly rising and a net withdrawal of 259 billion yuan in the open market, indicating a potential tightening of liquidity [1][5]. Market Performance - The majority of government bond futures closed lower, with the 30-year main contract up 0.03% at 116.52, while the 10-year main contract remained flat at 108.66 [2]. - Interbank bond yields mostly continued to rise, with the 10-year government bond yield increasing by 0.25 basis points to 1.7925% [2]. - The China Convertible Bond Index closed down 0.67% at 482.64 points, with significant declines in several convertible bonds [2]. Overseas Bond Market - In North America, U.S. Treasury yields rose across the board, with the 10-year yield increasing by 2.71 basis points to 4.110% [3]. - Asian markets saw Japanese bond yields rise, with the 10-year yield up 1.7 basis points to 1.697% [3]. - In the Eurozone, yields on 10-year bonds also increased, with French bonds rising by 2.3 basis points to 3.442% [3]. Primary Market - The China Development Bank's financial bonds had successful bids with yields of 1.5250%, 1.7027%, and 1.8779% for 2-year, 5-year, and 10-year bonds, respectively, showing strong demand [4]. - Local government bonds in Inner Mongolia and Shaanxi Province also saw high bid multiples, indicating robust investor interest [4]. Liquidity Conditions - The central bank conducted a 7-day reverse repurchase operation with a fixed rate of 1.40%, resulting in a net withdrawal of 259 billion yuan due to maturing reverse repos [5]. Funding Rates - The Shibor rates for most short-term products increased, with the overnight rate down slightly and the 7-day rate up by 0.3 basis points to 1.415% [6]. Institutional Perspectives - Citic Securities suggests that the expansion of the "Southbound Trading" program allows for the inclusion of dim sum bonds and Chinese dollar bonds to enhance returns [7]. - Huachuang Securities indicates that favorable factors in the bond market may lead to a decline in yields as year-end positioning begins [7]. - Huatai Fixed Income notes that the bond market may experience low rates and high volatility, with a projected range for 10-year government bonds between 1.6% and 2.1% [7].