Report Summary 1) Report Industry Investment Rating No relevant content provided. 2) Core View of the Report - The trading sentiment in the bond market remains weak, and the market needs to decouple from the stock market to confirm a bottom. In the short term, trading is difficult. It is recommended not to short. Cautious investors should wait and see, while aggressive investors looking to bottom - fish can enter with small positions and stagger their purchases [1][3]. 3) Summary by Related Catalogs a) Market Review - On Wednesday, Treasury bond futures opened higher and fluctuated in the morning, then weakened in the afternoon due to the strong performance of the stock market. Medium - and long - term varieties hit new lows. The yield of spot bonds reversed from a decline to an increase and rose significantly in the afternoon. The central bank had a net injection of 497.5 billion yuan through 7 - day reverse repurchase in the open market, and 10 billion yuan of treasury cash fixed - term deposits matured. The funding situation was okay, with DR001 around 1.47% [1]. b) Intraday News - The US Department of Commerce officially announced on Tuesday that it would include 407 types of steel and aluminum derivative products, such as wind turbines, in the 50% tariff list, suddenly expanding the scope of Trump's steel and aluminum tariffs and catching US importers off - guard [2]. c) Market Data - **Contract Prices and Positions**: - TS2509 price was 102.322, down 0.006 from the previous day, and its position decreased by 3,655 hands to 94,194 hands. - TF2509 price was 105.45, down 0.085, and its position decreased by 2,116 hands to 170,809 hands. - T2509 price was 107.935, down 0.115, and its position decreased by 5,181 hands to 227,058 hands. - TL2509 price was 116.24, down 0.22, and its position increased by 2,709 hands to 152,216 hands [4]. - **Basis and Trading Volume**: - TS basis (CTD) was 0.0266, down 0.0066, and its trading volume increased by 5,907 hands to 48,745 hands. - TF basis (CTD) was 0.0464, down 0.0168, and its trading volume decreased by 21,612 hands to 55,311 hands. - T basis (CTD) was 0.0542, down 0.0734, and its trading volume decreased by 14,976 hands to 80,139 hands. - TL basis (CTD) was 0.1715, up 0.3672, and its trading volume decreased by 17,379 hands to 99,916 hands [4].

Market Analysis - Lack of retail investor frenzy in China's stock market may lead to a more sustainable rally [1] - High-net-worth investors are entering the market, but most individual investors prefer wealth management products over direct stock or mutual fund investments [1] - Low small-lot trading volume indicates limited retail participation [1]

Group 1 - Global investors are shifting away from high-priced corporate bonds, with many asset management firms and top banks taking defensive positions against the corporate debt market [1][2] - The investment-grade bond spread has narrowed to 78 basis points, nearing the 27-year low of 1998, indicating extreme market optimism that contrasts sharply with official economic forecasts [1][2] - There is a significant increase in demand for options to short corporate bond indices, suggesting that investors foresee a reasonable downside in the stock market over the next three months [1][3] Group 2 - Current credit spread levels imply a global economic growth expectation of nearly 5%, which is significantly higher than the IMF's forecast of 3%, causing unease among some investors [2] - The probability of a recession in the U.S. is estimated at 40% according to the IMF, while other major economies also face risks, leading to a low allocation strategy in credit [2] - The U.S. Treasury market is signaling deep concerns about the economic outlook, with bets on potential interest rate cuts by the Federal Reserve [2] Group 3 - Historically, the credit market has acted as a leading indicator for broader market movements, with recent trends indicating a potential market reversal [3] - A significant change was noted as the proportion of corporate bonds with narrowing spreads dropped from 80% to 60% within five trading days, marking a critical shift [3] - Macro investors are likely taking directional views or hedging against the upward trend in risk assets, indicating a change in market sentiment [3] Group 4 - High-yield bonds are seen as the most vulnerable segment in the overpriced corporate debt market, with expectations of rising refinancing costs and default rates potentially impacting the stock market [4] - The risk premium for U.S. junk bond issuers has fallen to its lowest level since 2020, at approximately 2.8%, indicating severe compression of market risk premiums [4] - A downturn in the credit market is expected to eventually pressure the stock market as well [4] Group 5 - Not all market participants share a pessimistic view, as the Nasdaq 100 index recently recorded its largest weekly gain in over a month, supported by strong technical factors and better-than-expected earnings [5] - Market strategists note that when there is a divergence between the stock and bond markets, the bond market tends to be the more accurate indicator of economic conditions [5]

Group 1: Bond Market Insights - The core viewpoint for the bond market is summarized as "supportive factors, mid-term positive" [2] - Three main reasons are identified: real demand mismatch, policy support, and emotional adjustment [2] - The current demand and supply mismatch remains unresolved, with PPI being negative for 33 consecutive months, indicating a need for demand-side cooperation with supply-side reforms [2] - Recent political meetings emphasized the need for sustained macro policies, including proactive fiscal measures and moderately loose monetary policies to support the bond market [2] - Market sentiment has adjusted, with a significant opportunity for rebound in the ten-year government bond ETF (511260) after a nearly 1% maximum drawdown in less than 20 trading days [2] Group 2: Equity Market Insights - The core viewpoint for the equity market is "normal pullback, bullish trend" [3] - The equity market shows a strong upward trend, with the Shanghai Composite Index closing above the 5-day moving average for ten consecutive trading days, indicating strong market momentum [3] - The current pullback is seen as a normal reaction to rapid gains, with market consensus on long-term confidence in the economy and the potential positive impact of "anti-involution" policies [3] - Technical analysis indicates multiple support levels, with the market forming a "slow bull" pattern after breaking through the 3600-point mark [3] Group 3: Investment Opportunities - Both equity and bond markets present significant investment opportunities despite recent pullbacks, driven by different underlying logic [4] - For bond market investments, the recommendation is to allocate to the ten-year government bond ETF (511260), which is considered to have good allocation value due to its benchmark status [4] - Investors are advised to be cautious with longer-duration and higher-volatility products, as they may carry certain risks [4]

1. Report Industry Investment Rating - The rating for treasury bonds is "oscillating" [4] 2. Core Viewpoints of the Report - The bond market is still in a favorable period. The pattern of fundamental factors favoring the bond market remains unchanged, the central bank is expected to continue to support market liquidity, and the bond market should continue to strengthen slightly [2][16] - The performance of credit data in July should be relatively weak, and the tax period is a disturbing factor, but the central bank can keep the capital market in an overall balanced state. After continuous upward movement, the upward momentum of the stock market has weakened, and it is expected to consolidate next week [2] 3. Summary According to the Table of Contents 3.1 One - Week Review and Views 3.1.1 This Week's Trend Review - From August 4th to August 10th, treasury bond futures rose slightly. Market sentiment was affected by various factors such as new bond interest taxation news, rumors about bond issuance changes, stock market trends, and central bank liquidity operations. As of August 8th, the settlement prices of the main contracts of 2 - year, 5 - year, 10 - year, and 30 - year treasury bond futures were 102.370, 105.820, 108.610, and 119.250 yuan respectively, with changes of +0.018, +0.090, +0.160, and +0.160 yuan compared to the previous weekend [1][13] 3.1.2 Next Week's Viewpoint - The fundamental factors favorable to the bond market remain unchanged. The 7 - month financial data to be released next week is expected to be weak. The central bank will continue to support liquidity, and the capital market will be balanced. The difficulty of further increasing market risk appetite next week is relatively high, and the bond market will be less sensitive to the rise of the stock market [16][17] - Strategies include: holding long positions in trading accounts next week, paying close attention to market sentiment changes, holding the strategy of steepening the yield curve, and observing the narrowing of inter - period spreads [18][19] 3.2 Interest - Bearing Bond Weekly Observation 3.2.1 Primary Market - This week, 62 interest - bearing bonds were issued, with a total issuance volume of 8085.09 billion yuan and a net financing amount of 5958.98 billion yuan. The net financing amount of treasury bonds increased, while that of local government bonds decreased, and that of inter - bank certificates of deposit increased [23] 3.2.2 Secondary Market - Treasury bond yields mostly declined. As of August 8th, the yields of 2 - year, 5 - year, 10 - year, and 30 - year treasury bonds were 1.40%, 1.55%, 1.69%, and 1.96% respectively, with changes of - 2.44, - 2.32, - 1.76, and +1.00 bp compared to the previous weekend. The 10Y - 1Y spread narrowed, while the 10Y - 5Y and 30Y - 10Y spreads widened [27] 3.3 Treasury Bond Futures 3.3.1 Price, Trading Volume, and Open Interest - Treasury bond futures rose slightly. As of August 8th, the settlement prices of the main contracts of 2 - year, 5 - year, 10 - year, and 30 - year treasury bond futures were 102.370, 105.820, 108.610, and 119.250 yuan respectively, with changes of +0.018, +0.090, +0.160, and +0.160 yuan compared to the previous weekend. The trading volumes and open interests of different - term treasury bond futures changed to varying degrees [36][39] 3.3.2 Basis and IRR - This week, the opportunity for cash - and - carry arbitrage was not obvious. The capital market was generally loose, and the futures basis generally oscillated within a narrow range. The IRR of the CTD bonds of each variety's main contracts was between 1.4% - 1.8%, and the current certificate of deposit interest rate was between 1.5% - 1.6%, so the opportunity for cash - and - carry arbitrage strategies was relatively limited [43] 3.3.3 Inter - period and Inter - variety Spreads - As of August 8th, the inter - period spreads of the 2509 - 2512 contracts of 2 - year, 5 - year, 10 - year, and 30 - year treasury bond futures were - 0.066, - 0.055, +0.105, and +0.370 yuan respectively, with changes of - 0.024, 0.000, +0.080, and +0.100 yuan compared to the previous weekend. Next week, the inter - period spreads are expected to oscillate within a narrow range and narrow slightly [46][47] 3.4 Capital Market Weekly Observation - This week, the central bank conducted 11267 billion yuan of reverse repurchase operations in the open market, with 16632 billion yuan of reverse repurchases maturing, resulting in a net withdrawal of 5365 billion yuan. Capital interest rates such as R007, DR007, SHIBOR overnight, and SHIBOR 1 - week all declined slightly. The average daily trading volume of inter - bank pledged repurchase increased [51][54][56] 3.5 Overseas Weekly Observation - The US dollar index oscillated weakly, and the yield of 10Y US treasury bonds increased. As of August 8th, the US dollar index fell 0.43% to 98.2670 compared to the previous weekend's close, the yield of 10Y US treasury bonds was reported at 4.27%, up 4BP from the previous weekend, and the spread between Chinese and US 10Y treasury bonds was inverted by 258.0BP [61] 3.6 Inflation High - Frequency Data Weekly Observation - This week, industrial product prices showed mixed trends. The Nanhua Industrial Product Index, Metal Index, and Energy and Chemical Index changed by - 35.19, +75.23, and - 36.18 points respectively compared to the previous weekend. Agricultural product prices also showed mixed trends, with the prices of pork, 28 key vegetables, and 7 key fruits changing by - 0.19, +0.21, and - 0.05 yuan/kg respectively compared to the previous weekend [65] 3.7 Investment Advice - The first and middle ten - days of August are a favorable period for the bond market, and trading accounts can continue to hold long positions next week [18][66]

Core Viewpoint - The statement from President Trump emphasizes the positive impact of tariffs on the stock market, claiming record highs and significant inflows into the U.S. treasury [1] Group 1 - Tariffs are reportedly having a substantial positive effect on the stock market, with records being set almost daily [1] - Thousands of billions of dollars are flowing into the U.S. treasury as a result of these tariffs [1] - The potential for adverse court rulings is highlighted, with a warning that such decisions could lead to a significant economic downturn reminiscent of the Great Depression in 1929 [1]

新华财经纽约8月7日电（记者刘亚南）纽约股市三大股指7日高开低走，午后整体弱势盘整，收盘时纽 约股市三大股指涨跌不一。 截至当天收盘，道琼斯工业平均指数比前一交易日下跌224.48点，收于43968.64点，跌幅为0.51%；标 准普尔500种股票指数下跌5.06点，收于6340.0点，跌幅为0.08%；纳斯达克综合指数上涨73.27点，收于 21242.7点，涨幅为0.35%。 板块方面，标普500指数十一大板块六涨五跌。公用事业板块和必需消费品板块分别以1.05%和0.73%涨 幅领涨，医疗板块和金融板块分别以1.15%和1.13%跌幅领跌。 美国投行和资产管理公司派杰公司（Piper Jaffray)首席市场技术官克雷格·约翰逊（Craig Johnson）表 示，就趋势和相对强势而言，今年下半年股市前景依然积极。 个股方面，礼来制药7日发布的二季度业绩好于市场预期并上调全年业绩展望，但由于其减肥药实验结 果令人失望，该公司股价当日下跌14.14%。 （文章来源：新华财经） ...

Core Viewpoint - The report from Shenwan Hongyuan indicates that the 10-year government bond yield in China is expected to fluctuate between 1.65% and 1.80% from August to October, with stringent conditions required for a downward breakthrough [1] Group 1: Market Conditions - The bond market is anticipated to experience volatility during August to October, with mid to short-term bonds expected to perform steadily, leading to a steeper yield curve compared to the current state [1] - In August, the pressure on the bond market may not be significant due to a peak in government bond supply, and monetary policy will need to support liquidity alongside fiscal needs [1] Group 2: Central Bank Actions - If the bond market experiences intensified adjustments, the central bank may consider restarting open market operations for government bonds [1] - The focus on preventing capital turnover and managing risks suggests that liquidity is more likely to remain loose rather than further easing [1] Group 3: Future Risks and Economic Indicators - The transition between the third and fourth quarters is identified as a potential risk window, as government bond supply is expected to decrease, leading to a lower probability of liquidity hedging [1] - There may be a risk of rising consumer price index and producer price index as the economy enters a verification period for anti-involution effects [1] Group 4: Investment Opportunities - The second half of the year may present lower odds for the bond market and higher odds for the stock market, driven by the migration of household deposits and insurance funds into equities [1] - The stock market is showing signs of bottoming out, with a gradual emergence of wealth effects, while the bond market's pricing is becoming less sensitive to fundamentals and liquidity, making it more reactive to changes in price expectations [1]

Core Viewpoint - The stock market is likened to a flowing sand dune, beautiful yet hiding terrifying dangers, illustrating the unpredictable nature of market movements and the potential for sudden changes [1][2] Group 1 - The stock market's dynamics resemble a sand dune, where gradual accumulation can lead to significant peaks, but sudden collapses can occur without warning [1] - The metaphor of wind represents the relentless forces that shape the market, continuously moving and redistributing value among different assets [1] - After a market upheaval, the landscape can change dramatically, with previously insignificant stocks rising to prominence while others may vanish entirely [1]

Market Overview - The three major A-share indices collectively rose in the morning session, with the Shanghai Composite Index up by 0.48%, the Shenzhen Component Index up by 0.65%, and the ChiNext Index up by 0.72% [1] - The total trading volume in the Shanghai, Shenzhen, and Beijing markets reached 1.133 trillion yuan, a decrease of 26.5 billion yuan compared to the previous day [1] - Over 3,900 stocks in the market experienced an increase [1] Bond Market Dynamics - Government bond futures collectively declined at midday, with the 30-year main contract down by 0.59%, the 10-year main contract down by 0.19%, the 5-year main contract down by 0.17%, and the 2-year main contract down by 0.07% [1] - The 30-year government bond ETF (Boshi 511130) experienced fluctuations, dropping by 49 basis points, with a trading volume exceeding 2.5 billion yuan and a turnover rate over 21% [1] - The ETF has seen a net inflow of 3.082 billion yuan over the past five days, indicating strong market interest [1] Economic Context - The current market interest rates have risen close to policy rates, suggesting limited further upward movement for government bond futures [2] - There remains a lack of effective domestic demand, necessitating a relatively accommodative monetary environment in the second half of the year to support the economy, with expectations for potential interest rate cuts [2] - Short-term interest rate cuts are unlikely, as the July Loan Prime Rate (LPR) remained unchanged, indicating limited upward potential for government bond futures in the near term [2] Investment Sentiment - The overall liquidity in the market is relaxed, supported by the central bank's 1.4 trillion yuan reverse repurchase operations, leading to a decline in government bond yields [2] - The bond market is expected to maintain a volatile pattern in the short term, while the medium to long-term outlook remains bullish due to weak economic recovery and supportive policies [2] - The strong performance of the stock market has increased risk appetite, which may exert pressure on the bond market [2] ETF Specifics - The 30-year government bond ETF (Boshi 511130) was established in March 2024 and is one of only two long-duration bond ETFs in the market, tracking the "Shanghai Stock Exchange 30-Year Government Bond Index" [3] - The index reflects the overall performance of 30-year government bonds listed on the Shanghai Stock Exchange, with a duration of approximately 21 years, making it highly sensitive to interest rate changes [3]