Market Overview and Analysis - The issuance scale of government bonds, local bonds, and policy financial bonds in the primary market last week was 515 billion, 231.6 billion, and 187.5 billion respectively, with net financing amounts of 344.3 billion, 203.2 billion, and 187.5 billion [1][8] - The total issuance scale of non-financial credit bonds was 322.6 billion, with a net financing amount of 151.9 billion. Two new convertible bonds were issued, with an expected financing scale of 2.9 billion [1][8] Secondary Market Review - Interest rates generally declined last week, with long-term bonds and public bonds performing well. Key influencing factors included strong bond allocation demand, increased central bank injections, and stock market fluctuations [2][9] Liquidity Tracking - The net injection in the open market last week was 229.5 billion, with the central bank conducting an excess of 700 billion in MLF, and 150 billion in treasury cash deposits maturing, indicating a relaxed funding environment [3][10] Policy and Fundamentals - The Ministry of Finance stated that the overall fiscal expenditure in 2026 will "only increase, not decrease." The central bank indicated that there is still room for rate cuts and reserve requirement ratio reductions this year. The actual GDP growth for Q4 2025 is projected at 4.5%, with an annual growth of 5% [4][11] Overseas Market - Disputes arose between the US and Europe over Greenland, coupled with Japan's government preparing for fiscal expansion by dissolving the House of Representatives. US and Japanese long-term bond yields rose significantly, while the dollar index fell by 1.9% over the week, and precious metals surged [5][12] Equity Market - The A-share market continued to rise last week, with the total A-share index increasing by 1.81%. The CSI 500 saw a significant rise of 4.34%, while the CSI 300 and SSE 50 fell by 0.62% and 1.54% respectively. The construction, chemical, and real estate sectors led the gains, while communication and banking sectors lagged [6][13] Bond Market Strategy Outlook - The recent recovery in the bond market is essentially a correction of previous overly pessimistic sentiments. However, the urgency for total easing policies remains to be observed as structural policies are gradually implemented. The continuous rise in commodity prices makes short-term inflation expectations difficult to dismiss [7][14] - Attention should be paid to policy signals released during local two sessions and the demand for allocation following the increase in local bond issuance next week. The overall outlook on whether the interest rate center can break downward still requires more confirmation signals [7][14]