Report Summary 1) Report Industry Investment Rating No industry investment rating is provided in the report. 2) Core Viewpoints - More incremental hedging policies are expected to be introduced around the conclusion of the China - US tariff negotiations, on top of the existing policies. The current focus is on accelerating the implementation of existing policies and optimizing the economic structure [5]. - The window for monetary easing is approaching, and it may be more targeted at directly reaching the real economy. The timing of reserve requirement ratio (RRR) cuts and interest rate cuts will depend on subsequent economic and financing data, as well as the outcome of tariff negotiations [6]. - In the real estate sector, the focus is on risk prevention and optimization of the policy for purchasing existing commercial housing. The stabilization of housing prices after a series of real - estate optimization policies is an important indicator for the medium - term inflection point of interest rates [7]. - In the short term, the impact of the actual fundamentals depends on the outcome of trade negotiations and the effectiveness of policy hedging. In the medium term, bond yields are expected to decline in a volatile manner [8]. 3) Summary by Related Content Policy Outlook - The Politburo meeting on April 25th analyzed the current economic situation. More incremental hedging policies will be introduced around the conclusion of the China - US tariff negotiations. The existing policies focus on optimizing the economic structure, with production - side emphasis on new - quality productivity and helping struggling enterprises, and demand - side emphasis on increasing the income of low - and middle - income groups and promoting service consumption [4][5]. - The "timely RRR cuts and interest rate cuts" mentioned in the meeting may indicate that the window for monetary easing is approaching. The specific timing will depend on economic and financing data and tariff outcomes. The focus is on preventing capital idling and directing funds to areas such as technological innovation, consumption expansion, and foreign - trade stability [6]. - In real estate, the meeting emphasized urban renewal, shantytown and dilapidated building renovation, and optimizing the policy for purchasing existing commercial housing. The stabilization of housing prices is crucial for the medium - term inflection point of interest rates [7]. Investment Strategy - Since April 2nd, the core logic of bond - market trading has shifted. The short - term impact of fundamentals depends on trade negotiations and policy hedging. The current bond yields already imply some expectations of interest rate cuts, and an interest rate cut may lead to a rate correction [7][8]. - In the medium term, bond yields are expected to decline in a volatile manner due to structural problems, the central bank's supportive attitude, and improved institutional behavior. It is recommended to conduct band trading of 10Y Treasury bonds in the 1.60% - 1.75% range and choose 10Y active bonds with high liquidity [8].