Core Viewpoint - The article discusses the recent fluctuations in U.S. Treasury yields and prices, highlighting the complex interplay between market dynamics, investor sentiment, and political factors, particularly under the influence of President Trump's policies. Group 1: U.S. Treasury Yield Dynamics - U.S. Treasury yields have risen significantly, with the 30-year yield surpassing 5% and the 10-year yield reaching 4.50%, indicating a decline in bond prices due to supply-demand imbalances [3][4]. - The rise in yields reflects a sell-off in U.S. Treasuries, contrary to expectations of them being a safe haven amid global uncertainties and rising risk aversion [7][9]. - The sell-off was exacerbated by forced liquidations from funds engaged in basis trading, leading to a vicious cycle of selling and rising yields [7][8]. Group 2: Political Influence and Market Sentiment - President Trump's approach to trade and monetary policy has contributed to a decline in market confidence in U.S. assets, with fears of escalating trade wars and pressure on the Federal Reserve [10][11]. - Trump's strategies, including potential tariff reductions and reassurances regarding the Federal Reserve's leadership, have temporarily alleviated selling pressure on Treasuries [12][13]. - The article suggests that Trump's political maneuvers may be aimed at creating crises that he can later resolve, thereby consolidating his political power ahead of the 2026 midterm elections [10]. Group 3: Changing Perception of U.S. Treasuries - U.S. Treasuries are increasingly viewed as risk assets rather than risk-free assets, with a rising risk premium reflecting diminished confidence in the dollar's creditworthiness [16][18]. - The article notes that the U.S. national debt has exceeded $36 trillion, with debt-to-GDP ratios over 120%, raising concerns about the sustainability of U.S. fiscal policy [16][18]. - The decline in the dollar's share of global reserves, projected to fall below 50% by 2026, indicates a shift in investor sentiment away from U.S. Treasuries [20][18]. Group 4: Default Risks and Market Reactions - While the immediate risk of a U.S. Treasury default is low, the article highlights ongoing concerns about the potential for a systemic crisis in confidence regarding U.S. assets [22][26]. - The U.S. government has various tools to avoid default, including negotiating for foreign purchases of Treasuries and potentially restructuring debt [22][23]. - The article warns that if confidence in Treasuries continues to erode, the Federal Reserve may have to intervene more aggressively, which could lead to inflationary pressures [25][26].

Core Viewpoint - Nanjing Bank reported solid financial performance for 2024 and Q1 2025, with revenue and net profit growth, stable asset quality, and effective cost management [1][2][3] Financial Performance - In 2024, the company achieved revenue of 50.273 billion yuan, up 11.32% year-on-year, and a net profit attributable to shareholders of 20.177 billion yuan, up 9.05% year-on-year [1] - For Q1 2025, revenue was 14.190 billion yuan, up 6.53% year-on-year, and net profit was 6.108 billion yuan, up 7.06% year-on-year [1] - The company declared a total dividend of 0.56 yuan per share for 2024, resulting in a static dividend yield of 5.35% [1] Asset Growth - By the end of 2024, total loans reached 1.26 trillion yuan, up 14.31% year-on-year, with corporate loans at 936.204 billion yuan and personal loans at 310.194 billion yuan, increasing by 14.86% and 12.75% respectively [1] - Total deposits amounted to 1.50 trillion yuan, up 9.26% year-on-year, with corporate deposits at 1.019369 trillion yuan and personal deposits at 476.498 billion yuan, increasing by 8.14% and 11.69% respectively [1] - As of Q1 2025, total loans and deposits were 1.35 trillion yuan and 1.66 trillion yuan, respectively, reflecting increases of 7.14% and 10.77% from the beginning of the year [1] Interest Income and Cost Management - The net interest margin for 2024 was 1.94%, down 10 basis points year-on-year, which is less than the industry average decline [2] - Interest income increased by 4.62% year-on-year to 26.627 billion yuan in 2024, driven by loan expansion despite a decrease in interest rates [2] - Non-interest income included net fee and commission income of 2.593 billion yuan, down 28.55% year-on-year, and investment income of 20.995 billion yuan, up 26.99% year-on-year for 2024 [2] - The cost-to-income ratio improved to 28.08% in 2024 and 23.80% in Q1 2025, reflecting effective cost management [2] Asset Quality and Risk Management - The non-performing loan (NPL) ratio was stable at 0.83% in 2024, with a coverage ratio of 335.27%, indicating strong risk absorption capacity [3] - For Q1 2025, the NPL ratio remained at 0.83%, with a coverage ratio of 323.69% [3] Profit Forecast - Revenue projections for 2025-2027 are 53.254 billion yuan, 56.784 billion yuan, and 60.696 billion yuan, with net profits of 21.712 billion yuan, 23.426 billion yuan, and 25.392 billion yuan respectively [3] - The projected book value per share for 2025-2027 is 18.76 yuan, 21.09 yuan, and 23.41 yuan, corresponding to price-to-book ratios of 0.56, 0.50, and 0.45 times based on the closing price on April 24 [3]