Market Review - The bond market showed signs of recovery last week (December 15-19, 2025), with the 1-year government bond yield decreasing by 3.32 basis points to 1.35%, the 10-year yield down by 0.88 basis points to 1.83%, and the 30-year yield down by 2.35 basis points to 2.23%. There is a noticeable improvement in bullish sentiment across various maturities as negative factors are gradually being digested [3][13] - The U.S. Treasury yields also declined across the board during the same period, with the 1-year yield down by 3 basis points to 3.51%, the 2-year yield down by 4 basis points to 3.48%, and the 10-year yield down by 3 basis points to 4.16%. The release of a non-farm employment report indicated higher-than-expected job creation but also a higher unemployment rate, while a core CPI increase of 2.6% year-on-year suggested a notable cooling of inflation, contributing to the decline in U.S. Treasury yields [13] Public Fund Market Dynamics - The yield of money market funds has continued to decline this year, with the median 7-day annualized yield dropping to 1.24% as of December 16, 2025. Many money market funds have announced purchase limits to protect the interests of existing holders, with some limits as low as 10,000 yuan [4][16] Fund Index Performance Tracking - The Money Enhancement Index rose by 0.03% last week, with a cumulative return of 4.43% since inception [5][18] - The Short-term Bond Fund Index increased by 0.04% last week, with a cumulative return of 4.57% since inception [6][18] - The Mid-to-Long-term Bond Fund Index rose by 0.08% last week, with a cumulative return of 6.77% since inception [7][18] - The Low Volatility Fixed Income + Fund Index increased by 0.22% last week, with a cumulative return of 4.49% since inception [8][18] - The Medium Volatility Fixed Income + Fund Index rose by 0.12% last week, with a cumulative return of 6.25% since inception [9][18] - The High Volatility Fixed Income + Fund Index increased by 0.13% last week, with a cumulative return of 8.00% since inception [10][18] - The Convertible Bond Fund Index rose by 0.01% last week, with a cumulative return of 22.42% since inception [11][18] - The QDII Bond Fund Index increased by 0.05% last week, with a cumulative return of 10.05% since inception [11][18] - The REITs Fund Index fell by 2.22% last week, with a cumulative return of 29.35% since inception [11][18] Fund Index Positioning - The Money Enhancement Strategy Index aims for liquidity management and seeks to outperform money market funds while maintaining a smooth upward curve [19][21] - The Short-term Bond Fund Index focuses on liquidity management while ensuring controlled drawdowns and aims for a smooth upward curve [21][23] - The Mid-to-Long-term Bond Fund Index targets stable returns while controlling drawdowns, selecting funds that balance yield and risk management [23][25] - The Low Volatility Fixed Income + Index targets a 10% equity center and selects funds with a historical equity center within 15% [25][27] - The Medium Volatility Fixed Income + Index targets a 20% equity center and selects funds with a historical equity center between 15% and 25% [27][29] - The High Volatility Fixed Income + Index targets a 30% equity center and selects funds with a historical equity center between 25% and 35% [29][31] - The Convertible Bond Fund Index focuses on funds with a significant allocation to convertible bonds and evaluates based on long-term performance and risk-adjusted returns [31][32] - The QDII Bond Fund Index includes overseas bonds and selects funds based on credit ratings and risk control [32][36] - The REITs Fund Index focuses on mature, stable infrastructure projects with predictable cash flows and selects funds based on operational stability and valuation [36]

Market Overview - The bond market showed weak performance last week, with the 1-year government bond yield remaining at 1.40%, the 10-year yield rising by 0.68 basis points to 1.85%, and the 30-year yield increasing significantly by 7.2 basis points to 2.26%. The overall bond market is influenced by the recovering sentiment in the equity market and the year-end demand for banks to sell bonds to realize profits, leading to a trend of short-end fluctuations and long-end weakness, particularly in ultra-long bonds [3][15]. - The bond market is expected to face year-end negative disturbances, with increased selling pressure from institutions and uncertainties surrounding upcoming political meetings affecting bullish sentiment. The 10-year government bond yield is anticipated to operate above 1.80%, and a neutral duration strategy is recommended while waiting for better allocation opportunities [15]. Public Fund Market Dynamics - A draft for the performance assessment management guidelines for fund management companies has been released, emphasizing the need for fixed-income products to focus more on credit and liquidity management. This marks a new phase in the reform of compensation and performance assessment in the public fund industry, aiming to establish a long-term incentive mechanism centered on medium to long-term investment returns [17]. Fund Index Performance Tracking - The Money Enhanced Index rose by 0.02% last week, with a cumulative return of 4.37% since inception [4]. - The Short-term Bond Fund Index fell by 0.01%, with a cumulative return of 4.50% since inception [5]. - The Medium to Long-term Bond Fund Index decreased by 0.15%, with a cumulative return of 6.58% since inception [6]. - The Low Volatility Fixed Income + Fund Index fell by 0.01%, with a cumulative return of 4.24% since inception [7]. - The Medium Volatility Fixed Income + Fund Index increased by 0.51%, with a cumulative return of 6.15% since inception [8]. - The High Volatility Fixed Income + Fund Index rose by 0.43%, with a cumulative return of 7.76% since inception [9]. - The Convertible Bond Fund Index increased by 0.53%, with a cumulative return of 21.98% since inception [9]. - The QDII Bond Fund Index fell by 0.21%, with a cumulative return of 10.09% since inception [10]. - The REITs Fund Index decreased by 1.16%, with a cumulative return of 31.68% since inception [11].