Investors are hungrier than ever for bonds in the ETF industry amid worries over stretched valuations in U.S. stocks — and as investors position around an unusual setup in which the Fed is cutting rates amid an expanding economy. ...

Group 1 - The research team from Caitong Fixed Income indicates that the Ping An 0-3 National Development Bank Bond ETF (159651) serves as a passive index fund tracking short-duration policy bank bonds, positioned as a "money+" short-term cash management tool, balancing liquidity management and leveraged interest rate arbitrage [1] - Current market sentiment suggests a moderately strong bond market, with potential for interest rate declines depending on trade tensions and rate cut expectations, leading to a recommendation for small adjustments and buying during dips while focusing on high yield spread positions [1] - The 10-year National Development Bank bond to treasury bond spread has narrowed to around 14-15 basis points, with expectations that this trend may be influenced by new redemption fee regulations [1] Group 2 - The issuance of special bonds has shown three characteristics: initiation in the second quarter, tight renewal intervals, and no cross-year renewals, indicating that the 25-year ultra-long special bond may not be renewed until at least March 2026 [2] - The 25-year T6 bond is expected to maintain a yield spread of 4-6 basis points over the 25-year T5 bond, with current spreads at 2.5 basis points, suggesting potential for further yield compression in a favorable bond market [3] - The National Development Bank Bond ETF has shown a 1.55% increase over the past year, with a trading volume of 163.92 million yuan and a turnover rate of 0.33% as of October 21, 2025 [3][4] Group 3 - The National Development Bank Bond ETF ranks 68th out of 490 in terms of performance among index bond funds, with a historical maximum drawdown of 0.12% and a recovery time of 8 days [4] - The management fee for the National Development Bank Bond ETF is 0.15%, and the custody fee is 0.05%, making it one of the lowest in its category [5] - The ETF closely tracks the China Bond 0-3 Year National Development Bank Bond Index, which includes policy bank bonds with a maturity of up to 3 years, serving as a benchmark for this type of investment [5][6]