Core Viewpoint - The bond market continues to experience narrow fluctuations, with recent adjustments in LPR and deposit rates not significantly impacting market sentiment [1][2] Market Performance - As of May 21, the interbank bond market showed slight fluctuations in yield rates, with the 3-month government bond yield stable at 1.43%, the 2-year yield down 1 basis point to 1.48%, and the 10-year yield up 1 basis point to 1.71% [2] - The recent adjustments in LPR and deposit rates were anticipated and did not lead to significant market changes, as the market had already priced in the current easing measures [2][3] Institutional Perspectives - Some institutions maintain a bullish outlook on the bond market, suggesting that the current environment allows for active bond allocation and potential capital gains through extending duration [5] - The consensus among institutions is that the broad trend of declining interest rates remains intact, although the current sentiment is somewhat weak due to limitations on the downward movement of long-term rates [4][5] Future Expectations - The expectation is that the decline in deposit rates will lead to a decrease in other cash-like rates, which is crucial for managing banks' funding costs and stabilizing the financial system [4] - The market anticipates that as currency constraints ease, there will be continued downward adjustments in short-term rates, which could subsequently lead to declines in medium to long-term bond yields [4] Investment Strategies - The prevailing strategy among investors is to engage in wave trading, with 83% of surveyed investors favoring this approach, while others are considering duration adjustments and selective exposure to equity [6] - Institutions recommend focusing on medium to short-term bonds with positive carry, while also exploring opportunities in municipal private placement bonds and stable ABS valuations [6]

Core Points - The People's Bank of China announced a decrease in the Loan Prime Rate (LPR), with the 1-year LPR at 3% and the 5-year LPR at 3.5%, both down by 10 basis points from the previous month [1] - Major banks collectively lowered deposit rates, with a 5 basis point reduction in demand deposits and a 15 to 25 basis point reduction in fixed-term deposits [1] - The reduction in deposit rates is expected to lower the cost of liabilities for commercial banks, enhancing their willingness to lend [1][2] Group 1: Impact on Real Estate Market - The real estate market showed signs of stabilization, with new residential sales area declining by 2.8% year-on-year from January to April 2025, but the decline rate has narrowed [1][2] - The decrease in LPR is anticipated to lower financing costs for both enterprises and residents, which is crucial for stimulating investment and consumption [1][3] - The current policy environment is expected to support the real estate market, with core cities showing positive performance [2][4] Group 2: Future Policy Directions - The central bank's recent actions, including a reduction in public housing loan rates, are expected to create more room for lowering commercial mortgage rates [3] - The government has shown strong confidence and determination to stabilize the real estate market, with a variety of supportive policies anticipated to be implemented [4][5] - Comprehensive policies aimed at boosting domestic demand and consumption are expected to strengthen the fundamentals of the real estate market [5]

Core Viewpoint - Domestic precious metal futures show mixed performance, while international precious metals are experiencing a decline [1][2] Group 1: Domestic Market Performance - As of May 20, the main contract for Shanghai gold is priced at 754.38 CNY per gram, with an increase of 0.48% [1] - The main contract for Shanghai silver is priced at 8074.00 CNY per kilogram, with a decrease of 0.21% [1] - The opening price for Shanghai gold was 757.00 CNY per gram, reaching a high of 759.56 CNY and a low of 753.12 CNY [2] - The opening price for Shanghai silver was 8125.00 CNY per kilogram, with a high of 8137.00 CNY and a low of 8073.00 CNY [2] Group 2: International Market Performance - COMEX gold is priced at 3213.30 USD per ounce, reflecting a decline of 0.58% [1] - COMEX silver is priced at 32.26 USD per ounce, showing a decrease of 0.74% [1] - The opening price for COMEX gold was 3233.00 USD per ounce, with a high of 3235.80 USD and a low of 3207.40 USD [2] - The opening price for COMEX silver was 32.50 USD per ounce, reaching a high of 32.54 USD and a low of 32.24 USD [2] Group 3: Market Influences - The market anticipates a 25 basis point rate cut by the Reserve Bank of Australia, marking the first cut since February [3] - The RBA is expected to acknowledge that inflation has returned to target levels, but may refrain from indicating a series of rate cuts due to global economic uncertainties [3] - Recent developments include Moody's withdrawal of the last AAA credit rating for the U.S. due to significant fiscal deficits and rising interest costs [4] - The approval of a tax and spending bill by the House Budget Committee is expected to increase the deficit by trillions, raising investor concerns about U.S. debt [4]

Core Viewpoint - ASML's stock experienced a significant decline despite reporting better-than-expected Q1 earnings, primarily due to macroeconomic and geopolitical pressures impacting investor sentiment [1][4]. Financial Performance - ASML reported earnings of 6 euros per share on sales of 7.74 billion euros, exceeding market expectations by 0.20 euros per share, although revenue fell short by approximately 40 million euros [3]. - Year-over-year, sales increased by 46%, and the company maintained its full-year sales guidance between 30 billion euros and 35 billion euros, with a gross margin forecast of 51% to 53% [3]. Market Reactions - The stock price fell by 7% during trading, with a peak decline of 8.6%, while the S&P 500 and Nasdaq Composite also experienced declines of 2.2% and 3.1%, respectively [1][2]. - The bearish market reaction was influenced by new tariffs on Chinese goods and expanded export restrictions on processors from Nvidia and AMD [5][6]. Macroeconomic Context - The Trump administration announced an increase in tariffs on Chinese goods from 145% to 245%, contributing to market uncertainty [5]. - Federal Reserve Chairman Jerome Powell indicated that the Fed is unlikely to cut interest rates soon, as the effects of new tariffs on inflation and economic growth need to be assessed [6].