Core Viewpoint - US Treasury bonds experienced a slight decline on Wednesday, primarily pressured by significant sell-offs in classic and long-term Treasury futures, along with weak demand in the 5-year Treasury auction [1][2]. Group 1: Market Performance - US Treasury yields rose by 1 to 2.5 basis points, with mid-term bonds leading the decline despite a reduction in the previously observed flattening of the yield curve towards the end of the trading session [1][2]. - The 5-year Treasury auction, amounting to $70 billion, saw a slight increase in yields, with the auction's bid-to-cover ratio indicating a higher allocation to primary dealers at 12.8%, the highest since March 2025 [1][2]. Group 2: Yield Rates - As of 3:58 PM Eastern Time, the yield rates for various maturities were as follows: 2-year at 3.4689%, 5-year at 3.6187%, 10-year at 4.048%, and 30-year at 4.6923% [3]. - The yield spread between the 2-year and 10-year Treasuries was reported at 57.71 basis points, while the spread between the 5-year and 30-year Treasuries was at 107.19 basis points [3].

Group 1 - The People's Bank of China (PBOC) conducted a 789.3 billion yuan 7-day reverse repurchase operation and a 400 billion yuan Medium-term Lending Facility (MLF) operation on July 25, resulting in a net injection of 801.8 billion yuan into the market [1] - For the week, the PBOC executed a total of 1.6563 trillion yuan in reverse repurchase operations and 400 billion yuan in MLF operations, leading to a net injection of 129.5 billion yuan after accounting for maturing operations [1] - The overnight Shanghai Interbank Offered Rate (Shibor) fell by over 11 basis points, while the 7-day and 14-day Shibor rates increased [1][2] Group 2 - The overnight Shibor rate decreased by 11.50 basis points to 1.5200%, while the 7-day Shibor rose by 7.50 basis points to 1.6200%, and the 14-day Shibor increased by 11.30 basis points to 1.7280% [2] - In the interbank pledged repo market, overnight rates decreased, and the 7-day and 14-day rates increased, with the R007 transaction share rising to 14.7% [6] - The weighted average rates for DR001 and R001 fell by 13.4 basis points and 14.0 basis points, respectively, while DR007 and R007 rates increased [6] Group 3 - The funding environment was reported to be loose on July 25, with overnight funding rates dropping to around 1.50% by the end of the day [11] - A total of 91 interbank certificates of deposit were issued on July 25, with an actual issuance amount of 74.54 billion yuan [11] - The secondary market for certificates of deposit showed a slight decline in overall yield levels compared to the previous day [12]