Market Overview - The bond market continued to show weakness on July 21, with the LPR remaining unchanged having minimal impact on the market [1] - The main contracts for government bond futures closed lower across the board, with the 30-year contract down 0.46% and the 10-year contract down 0.05% [2] - The interbank bond yield generally rose by about 1 basis point, with specific increases noted in various government bonds [2] Monetary Policy and Liquidity - The central bank conducted a reverse repurchase operation of 170.7 billion yuan at a fixed rate of 1.40%, resulting in a net withdrawal of 55.5 billion yuan for the day [5] - The Shibor rates for short-term products mostly declined, with the overnight rate down 9.6 basis points to 1.366% [5] - The LPR remained stable at 3% for one-year loans and 3.5% for loans over five years, reflecting a combination of policy effects and external factors [5] Institutional Insights - Institutions suggest that the bond market is currently in a narrow fluctuation pattern, with limited downside risk in the medium to long term [1][6] - Strategies recommended include maintaining positions and waiting for adjustments before reallocating [1] - The focus remains on liquidity, institutional behavior, and asset pricing effects as key short-term concerns for the bond market [7]