Group 1: Market Overview - The bond market showed a strong performance with a divergence in maturities, while credit bonds entered a bull market independent of interest rate bonds[2] - The People's Bank of China conducted a reverse repurchase operation of 1.4 trillion yuan, indicating a supportive liquidity stance, leading to a significant decline in short-term yields[2] - The first batch of 10 Sci-Tech Innovation ETFs raised a total of 30 billion yuan on their launch day, reflecting strong market interest[19] Group 2: Credit Bond Performance - Credit bonds experienced an independent bull market, with all major varieties rising more than interest rate bonds[2] - The yield on 30-year government bonds increased by 1.44 basis points, while AAA and AA+ medium-term notes saw yield declines of 2.8 to 3.6 basis points across various maturities[15] - As of July 18, 68% of credit bonds had yields below 2%, indicating a low yield environment[4] Group 3: ETF Impact - The popularity of the Sci-Tech ETFs is comparable to that of market-making credit ETFs, becoming a major driver of the credit bond market[19] - The total scale of Sci-Tech ETFs reached 88.3 billion yuan, with a weekly increase of 59.3 billion yuan, and a turnover rate of 6.5% for component bonds[19] - The composition of the first batch of Sci-Tech ETFs is primarily high-rated bonds, with significant representation from transportation, public utilities, and construction sectors[22] Group 4: Investment Strategy and Risks - Current low credit yields and the "fragile" nature of rising credit prices suggest caution in pursuing further investments[4] - Fund managers are shifting from long-term to more liquid bonds, indicating a defensive strategy amid market volatility[4] - Risks include unexpected financing policy changes and potential credit events, which could impact market stability[60]