债市日报：11月17日

Market Overview - The bond market showed a strong consolidation on November 17, with all major government bond futures closing higher, and interbank bond yields declining by approximately 0.5-1 basis points [1][2] - The central bank conducted a net injection of 163.1 billion yuan in the open market, with funding rates collectively rising due to tax period disturbances [1][6] Bond Futures Performance - The 30-year main contract rose by 0.33% to 116.45, the 10-year main contract increased by 0.09% to 108.485, the 5-year main contract went up by 0.05% to 105.905, and the 2-year main contract gained 0.03% to 102.48 [2] Yield Movements - Major interbank bond yields generally declined, with the 10-year government bond yield falling by 0.35 basis points to 1.8015%, and the 30-year government bond yield decreasing by 1 basis point to 2.1385% [2] International Bond Market Trends - In North America, U.S. Treasury yields rose across the board, with the 10-year yield increasing by 2.71 basis points to 4.146% [3] - In Asia, Japanese bond yields generally increased, with the 10-year yield rising by 3 basis points to 1.73% [4] - In the Eurozone, 10-year bond yields also saw increases, with French yields up by 4.3 basis points to 3.457% [4] Primary Market Activity - Agricultural Development Bank's financial bonds had successful bids with yields of 1.3849% for 1.074 years, 1.6197% for 3 years, and 1.7076% for 5 years, with bid-to-cover ratios of 3.6, 7.53, and 1.24 respectively [5] Funding Conditions - The central bank conducted a 7-day reverse repo operation with a fixed rate of 1.40%, resulting in a net injection of 163.1 billion yuan after accounting for maturing repos [6] Institutional Insights - Institutions suggest that the current market conditions may lead to continued downward pressure on yields due to insufficient financing demand and ongoing asset scarcity, with a focus on the allocation opportunities towards the end of the year and early next year [1][7] - The tightening supply of convertible bonds has led to increased valuations, with recommendations for investors to focus on mid-to-large cap, relatively low-priced securities while taking profits on high-priced, overvalued stocks [8]