Core Viewpoint - The bond market has experienced multiple shifts in trading logic this year, with long-term bond yields attempting but failing to break previous lows, leading to a noticeable upward shift in yield levels. Recent developments have prompted a recovery in the bond market due to increased liquidity and expectations of central bank bond purchases [1]. Group 1: Positive Factors - The economic landscape shows a divergence between weak realities in traditional sectors like real estate and infrastructure, and strong expectations in high-tech industries and services, impacting financing needs in the bond market [2]. - The central bank's supportive monetary policy has maintained a loose liquidity environment, with market expectations for renewed bond purchases by the central bank [2]. - The supply pressure in the bond market is expected to decrease in Q4, with a significant reduction in the remaining issuance quota for government bonds compared to Q3 [2]. Group 2: Negative Factors - Recent inflation data indicates a narrowing decline in PPI and a rise in core CPI, suggesting a potential bottoming out of inflation, although demand remains a key factor [3]. - The relative attractiveness of bonds has diminished this year, leading to a higher likelihood of new funds entering the stock market rather than the bond market, compounded by the lack of formal implementation of new fund sales regulations [3]. - The bond market faces limited downward yield space due to the combined effects of reduced asset attractiveness and low incremental funding [3].