Core Viewpoint - The bond market is experiencing weak fluctuations, with the central bank's operations aimed at stabilizing liquidity and market expectations while avoiding rapid declines in interest rates [1][6][7]. Market Performance - The majority of government bond futures closed lower, with the 30-year main contract down 0.08% at 116.43, and the 10-year main contract down 0.01% at 108.62 [2]. - The interbank major interest rate bonds saw slight declines, with the 10-year government bond yield down 0.1 basis points to 1.789% [2]. - The China Convertible Bond Index rose 0.74% to 486.21 points, with notable increases in several convertible bonds [2]. International Market Trends - In the Eurozone, 10-year government bond yields fell slightly, with French yields at 3.436% and German yields at 2.652% [3]. - Asian markets saw a decline in Japanese bond yields, with the 10-year yield down to 1.677% [4]. - In North America, U.S. Treasury yields collectively decreased, with the 10-year yield at 4.083% [4]. Primary Market Activity - The Ministry of Finance reported weighted average yields for various government bonds, with the 50-year bond at 2.28% and a bid-to-cover ratio of 5.08 [5]. - Agricultural Development Bank's financial bonds had yields of 1.9015% for the 10-year term, with a bid-to-cover ratio of 2.49 [5]. Liquidity Conditions - The central bank conducted a 655 billion yuan reverse repurchase operation at a rate of 1.40%, resulting in a net withdrawal of 4922 billion yuan for the day [6]. - The Shibor rates showed mixed movements, with the overnight rate stable at 1.315% [6]. - The resumption of government bond trading operations in October signals the central bank's intent to support liquidity and stabilize market expectations [6][7]. Institutional Perspectives - Long-term stability in liabilities is expected to influence the scale and pace of bond investments, with forecasts suggesting a potential decline in yields for 10-year government bonds [8]. - The liquidity environment is anticipated to tighten slightly in November, but the central bank's recent actions indicate a commitment to maintaining low interest rates [8]. - The current bond-buying operations are seen as a substitute for reserve requirement ratio cuts, aimed at easing pressure on banks while providing targeted liquidity [8].