Xin Hua Cai Jing·2026-01-06 07:40Core Viewpoint - The bond market continues to show weakness, with government bond futures declining and interbank bond yields rising, influenced by fiscal policies and market dynamics [1][2]. Market Performance - Government bond futures closed lower across the board, with the 30-year main contract down 0.31% to 110.93, the 10-year down 0.13% to 107.7, and the 5-year down 0.11% to 105.57 [2]. - Interbank bond yields increased significantly, with the 10-year China Development Bank bond yield rising by 2.5 basis points to 1.975% and the 10-year government bond yield increasing by 2.1 basis points to 1.8825% [2]. Overseas Market Trends - In North America, U.S. Treasury yields fell across the board, with the 10-year yield down 3.14 basis points to 4.159% [3]. - In Asia, Japanese bond yields mostly rose, with the 10-year yield up 1.1 basis points to 2.131% [3]. - In the Eurozone, yields on 10-year bonds from France, Germany, Italy, and Spain all decreased, indicating a general trend of falling yields in the region [3]. Primary Market Activity - The Ministry of Finance's recent bond auctions saw yields lower than market estimates, with the weighted average yields for 28-day, 63-day, and 182-day bonds at 1.0698%, 1.1552%, and 1.2573% respectively [4]. - Agricultural Development Bank's financial bonds also showed competitive bidding, with a 91-day yield of 1.5199% and a 5-year yield of 1.7782% [4]. Liquidity Conditions - The central bank conducted a 162 billion yuan reverse repo operation at a rate of 1.40%, resulting in a net liquidity withdrawal of 2963 billion yuan for the day [5]. - Short-term Shibor rates mostly declined, with the overnight rate down 0.1 basis points to 1.263% [5]. Institutional Perspectives - Citic Securities suggests that the new fund sales regulations may have a limited negative impact on the bond market, with potential trading opportunities arising from reduced redemption risks [7]. - Huatai Fixed Income notes that while the absolute level of interest rates is better than last year, the market may experience slight trading opportunities in the short term, but a more prolonged weakness is anticipated [7].