Group 1 - The core viewpoint of the articles indicates that the bond market is experiencing a bullish trend, with the 10-year treasury futures closing up by 0.13% and most interbank bond yields declining by approximately 1 basis point [1] - The LPR (Loan Prime Rate) was lowered by 10 basis points, with the 1-year LPR now at 3% and the 5-year LPR at 3.5%, down from 3.1% and 3.6% respectively [1] - The central bank continued to inject liquidity through OMO (Open Market Operations), leading to a more relaxed funding environment compared to the previous week [1] Group 2 - April economic data showed a marginal weakening in retail sales and investment, falling below expectations, while industrial production maintained strong resilience [1] - Market expectations suggest a potential reduction in deposit rates this week, which has positively influenced bond market sentiment [1] - The政金债券ETF (Government Financial Bond ETF) has a total scale of approximately 46.2 billion, making it the largest bond ETF in the market, with a duration of around 7.5 years, suitable for clients looking to adjust duration easily [1]

Core Viewpoint - Recent adjustments in deposit rates by several small and medium-sized banks indicate a downward trend, with many banks now offering rates below 2% and some eliminating long-term deposit products altogether [1][3]. Group 1: Deposit Rate Adjustments - Numerous banks, particularly small and medium-sized ones, have lowered their deposit rates since April, with many banks making multiple adjustments in a short period [3]. - For instance, Fujian Huatuo Bank has reduced its one-day and seven-day personal notice deposit rates to 0.8% and 1.0% respectively, and its three-year fixed deposit rate from 2.7% to 2.45% [3]. - Shanghai Huari Bank has also adjusted its three-year fixed deposit rate from 2.6% to 2.5% and its five-year rate from 2.55% to 2.4%, resulting in a "negative interest rate" scenario where the five-year rate is lower than the three-year rate [3]. Group 2: Future Rate Expectations - The People's Bank of China announced a reduction in the 7-day reverse repurchase rate from 1.50% to 1.40%, which is expected to lead to a decrease in the Loan Prime Rate (LPR) by approximately 0.1 percentage points [5]. - Analysts predict that this reduction in policy rates will likely prompt further declines in deposit rates across the banking sector [5][6]. - The overall adjustment in policy rates aims to stabilize the net interest margins of commercial banks while reducing the comprehensive financing costs for enterprises [6].