Market Overview - The funding environment was tight at the beginning of the week but eased later, maintaining overall balance [1] - The bond market experienced fluctuations due to news regarding fund fee rate adjustments and potential cancellation of tax exemptions for bond funds, leading to a rise in yields [1][4] - The 10-year government bond yield surpassed 1.8%, reaching a new high since April, before retreating later in the week due to weak export and financial data, as well as rumors of the central bank restarting bond purchases [1][4] Yield Changes - As of September 12, 2025, the yields for various maturities changed as follows: 1-year (0.41BP), 2-year (2.14BP), 3-year (0.97BP), 5-year (0.18BP), 7-year (2.25BP), 10-year (4.1BP), 30-year (7.15BP), and 50-year (7.75BP) compared to September 5, 2025 [2][3] Bond Market Dynamics - On Monday, the bond market weakened due to new fund fee regulations, with the 10-year bond yield rising to 1.784% [4] - On Tuesday, significant redemptions in index bond funds led to a quick rise in yields, with the 10-year bond yield reaching 1.795% [4] - By Wednesday, the yield peaked at 1.8325% before slightly retreating to 1.815% [4] - On Thursday, rumors of the central bank's bond purchases helped restore market sentiment, causing yields to drop [4] - By Friday, the central bank announced a 600 billion yuan reverse repurchase operation, contributing to further yield declines [4] Government Bond Issuance - A total of 83 bonds were issued last week, amounting to 10,345.42 billion yuan, including 5,663.70 billion yuan in government bonds [8] - For the upcoming week (September 15-19, 2025), 69 bonds are planned for issuance, totaling 5,005.19 billion yuan [8] International Bond Market - The U.S. Treasury market saw a slight rebound after reaching multi-month lows, with the 10-year Treasury yield dropping to 4.06% [9] - The U.S. August CPI rose by 2.9%, slightly above the previous value of 2.7%, while core CPI remained stable at 3.1% [10][12] Central Bank Operations - The central bank conducted 12,645 billion yuan in reverse repurchase operations last week, resulting in a net injection of 1,961 billion yuan [13] - An announcement was made for a 600 billion yuan buyout reverse repurchase operation scheduled for September 15, 2025 [13] Economic Indicators - The consumer price index (CPI) in August remained stable, with a year-on-year decrease of 0.4% [15] - The total social financing scale increased by 26.56 trillion yuan in the first eight months of 2025, showing a year-on-year growth of 8.8% [16] Institutional Perspectives - Huazhong Securities noted that the bond market sentiment remains fragile, with potential opportunities for long-term investments despite current volatility [19] - Financial institutions suggest a "barbell" strategy for bond investments, focusing on medium to high-grade credit bonds in the short term and long-term government bonds [19]

Core Viewpoint - The People's Bank of China (PBOC) announced adjustments to the evaluation methods for primary dealers in the open market, effective from 2025, with no changes to the dealer list for that year [1][2] Group 1: Evaluation Method Adjustments - The adjustment of the evaluation criteria is a significant part of the transformation of the monetary policy framework [1] - The new evaluation indicators emphasize the requirements for monetary policy transmission and significantly reduce the number of indicators [1] - The new criteria for the money market transmission include "stable lending and reasonable pricing range" and "performance during periods of market tension" [1] Group 2: Bond Market Making - The evaluation indicators for bond market making include "number of bonds with market-making transactions and reasonable quotes" and "performance during periods of bond market volatility" [2] - This aligns with previous monetary policy reports that proposed establishing a linkage mechanism between market makers and primary dealers [2] Group 3: Compliance and Governance - The new evaluation criteria stress that primary dealers must not engage in illegal activities, with a focus on compliance and sound operations [2] - Institutions exhibiting improper behavior during the evaluation period will face suspension from dealer qualifications, with severe cases leading to disqualification in the following year [2] Group 4: Diversification of Dealers - The evaluation method will categorize institutions for assessment, making the evaluation process more scientific and fair [2] - This change aims to enhance the diversity of primary dealers, allowing different types of institutions to play a role in supporting the central bank's macroeconomic regulation and policy transmission [2]

Core Viewpoint - The People's Bank of China (PBOC) announced adjustments to the evaluation criteria for primary dealers in the open market to enhance monetary policy transmission and align with financial market developments, effective from 2025 [1]. Group 1: Evaluation Criteria Adjustments - The revised evaluation criteria for primary dealers will focus on aspects such as monetary market transmission, bond market making, research and innovation, and compliance with stable operations [1]. - The list of primary dealers for the year 2025 will remain unchanged despite the new evaluation criteria [1]. Group 2: Consequences of Non-compliance - Primary dealers that engage in improper conduct during the evaluation period will be suspended from participating in open market operations, with severe cases leading to disqualification in the following year [3].