Core Points - The central theme of the news is the recent monetary policy adjustments by the central bank, including a reserve requirement ratio (RRR) cut, interest rate reduction, and a decrease in housing provident fund loan rates aimed at stimulating economic growth and easing market liquidity pressures [1] Monetary Policy Adjustments - RRR cut of 0.5% effective from May 15, 2025, expected to provide approximately 1 trillion yuan in long-term liquidity to the market [1] - Interest rate reduction of 0.1% on the 7-day reverse repurchase operations, lowering the rate from 1.5% to 1.4%, which is anticipated to lead to a similar decrease in the loan market quotation rate (LPR) [1] - Reduction of 0.25 percentage points in the housing provident fund loan rate for first-time homebuyers, with the 5-year and above rate dropping from 2.85% to 2.6% [1] Market Reactions - Following the RRR announcement, the 10-year government bond yield initially dropped but then experienced fluctuations, indicating market volatility and mixed reactions to the policy changes [1][3] - As of 11:30 AM, short-term interest rates on government bonds rose while long-term rates fell, with the 10-year government bond yield reaching 1.64% [3] Economic and Market Outlook - The bond market is influenced by both policy adjustments and economic data, with potential for increased volatility due to prior market expectations being overly optimistic [8] - Long-term pressures on the bond market are anticipated, with a need for balanced investment strategies between stocks and bonds [8][9] - In the credit bond sector, there is potential value in mid-to-high-grade urban investment bonds and perpetual bonds from commercial banks, but attention to credit risk is essential [10]