Core Viewpoint - The bond market showed weakness on July 11, with government bond futures mostly declining, while liquidity remained balanced but slightly contracted, indicating a mixed outlook for the market [1][4]. Market Performance - Government bond futures closed mostly lower, with the 30-year main contract up 0.05% at 120.610, while the 10-year main contract fell 0.02% to 108.830 [2]. - The yield on the 30-year government bond decreased by 0.1 basis points to 1.975%, while the 10-year government bond yield increased by 0.5 basis points to 1.665% [2]. Primary Market - The Ministry of Finance reported weighted average bidding yields for 2-year and 3-year government bonds at 1.3582% and 1.3735%, respectively, with bid-to-cover ratios of 3.6 and 3.12 [3]. Liquidity Conditions - The central bank conducted a 7-day reverse repo operation of 847 billion yuan at a rate of 1.40%, resulting in a net injection of 507 billion yuan for the day [4]. - Short-term Shibor rates mostly increased, with the overnight rate rising by 1.7 basis points to 1.333% [4]. Institutional Perspectives - Citic Securities noted that the convertible bond market is experiencing high valuations, leading investors to prefer reducing positions in convertible bonds while increasing exposure to equity indices [5]. - Guosheng Fixed Income highlighted the continued growth of bond ETFs, with expectations for further expansion in the sci-tech bond ETF market due to policy support [5].