Core Viewpoint - The bond market continues to show weakness, with interbank bond yields generally rising by around 1 basis point, and a net withdrawal of 213.4 billion yuan in the open market, indicating a cautious atmosphere among investors [1][7]. Market Performance - The afternoon trading saw most government bond futures decline, with the 30-year main contract down by 0.15% to 115.95, the 10-year contract down by 0.09%, and the 5-year contract down by 0.05% [2]. - The yields on major interbank bonds mostly increased, with the 10-year policy bank bond yield rising by 0.8 basis points to 1.878%, and the 30-year government bond yield increasing by 0.45 basis points to 2.1585% [2]. International Market Trends - In North America, U.S. Treasury yields collectively fell, with the 2-year yield down by 7.2 basis points to 3.553% and the 10-year yield down by 7.6 basis points to 4.083% [3]. - In Asia, Japanese bond yields mostly rose, while in the Eurozone, yields on 10-year bonds from France, Germany, Italy, and Spain all decreased [4]. Primary Market Activity - The Ministry of Finance reported weighted average winning yields for 1-year and 2-year government bonds at 1.3485% and 1.3901%, respectively, with bid-to-cover ratios of 2.77 and 3.14 [5]. - The China Export-Import Bank's 3-year floating rate bond had a winning rate of 1.6701% with a bid-to-cover ratio of 6.57 [6]. Funding Conditions - The central bank conducted a 7-day reverse repurchase operation of 141.7 billion yuan at a rate of 1.40%, resulting in a net withdrawal of 213.4 billion yuan for the day [7]. - Short-term Shibor rates mostly increased, with the overnight rate rising by 1.4 basis points to 1.327% [7]. Institutional Insights - According to Shenwan Hongyuan, floating rate bonds are attractive to money market funds due to their advantages in duration and coupon yield, suggesting potential market expansion in a declining interest rate environment [8]. - Changjiang Securities anticipates limited disturbances in the bond market's liability side in Q4, predicting a downward trend in the yields of 10-year government bonds [9]. - Huaxi Securities notes that the bond market has entered a phase of information vacuum, with risk appetite becoming the main reference for interest rate pricing [9].