Core Viewpoint - The public fund industry experienced significant net redemptions in bond funds during the third quarter, with over 500 billion units redeemed, marking it as the most redeemed fund type. However, convertible bond funds performed well, with some achieving returns exceeding 20% [1][3][7]. Group 1: Fund Performance - As of October 29, nearly 3,900 bond funds reported their third-quarter results, with a total net redemption of over 500 billion units, leading to a slight decrease in total scale from 10.82 trillion yuan to 10.58 trillion yuan [3]. - More than 2,100 bond funds recorded net redemptions, accounting for nearly 55% of the total. Notably, 292 funds had redemptions exceeding 10 billion units, with one credit bond fund seeing a redemption close to 15 billion units [3][4]. - Conversely, over 1,000 bond funds experienced net subscriptions, with standout products like the Beixin Ruifeng Ding Sheng Short-Duration Bond Fund seeing net subscriptions of 15.055 billion units, increasing its scale to 17.115 billion yuan [4]. Group 2: Yield Analysis - The overall yield of bond funds was under pressure, with over 3,128 bond funds yielding less than 1%, and more than 1,000 recording negative returns. The yield on government bonds increased, with 1-year, 3-year, 5-year, and 10-year government bond yields rising by 12, 20, 22, and 35 basis points respectively [6][5]. - The 中债综合财富指数 (China Bond Composite Wealth Index) reported a yield of -0.93% for the third quarter, with capital gains contributing negatively to the overall yield [6]. Group 3: Market Outlook - Looking ahead, the bond market is influenced by mixed factors. Positive aspects include central bank operations and reduced selling pressure due to lowered fund durations. However, ongoing stock market performance may continue to exert pressure on the bond market [9][10]. - Analysts believe that the current rise in long-term interest rates is a normal response to changes in fundamental expectations, and a sustained bear market in bonds is unlikely. The market is expected to return to being driven by economic fundamentals and monetary policy after the release of pressure on the liability side [9][10].