Group 1: Report Industry Investment Rating - No relevant content mentioned Group 2: Core Viewpoints of the Report - Anti - involution policies affect commodity prices and inflation expectations, leading to significant adjustments in the bond market. Credit bond yields rise with interest rates, and most credit spreads widen, especially for secondary perpetual bonds [3]. - It's too early to talk about negative feedback, with a very low probability. The market's ability to respond has improved, and there has been no change in macro - expectations. Moreover, bank wealth management's focus on liquidity can prevent negative feedback [4][6]. - The asset shortage pattern remains unchanged and is intensifying. Interest rates may have short - term adjustments but not continuous and significant ones. Credit spreads are likely to be volatile, and investors should seize phased trading opportunities [7]. Group 3: Summary by Related Catalogs 1 Market Review: Sharp Correction, Widening Spreads of Secondary Perpetual Bonds 1.1 Market Performance - The credit bond market had a sharp correction this week, with credit spreads widening. The stock market strengthened, and the bond market adjusted significantly. Yields of medium - and long - term secondary perpetual bonds rose more than 10bp, with a 14.5bp decline in 10Y secondary perpetual bonds. Credit spreads of secondary perpetual bonds widened more, while those of some medium - and long - term notes, corporate bonds, and urban investment bonds slightly narrowed [25]. 1.2 Insurance Continues to Allocate, Funds Sell Massively - Insurance companies continued to strongly allocate credit bonds, with a net purchase of 125.63 billion yuan this week, a 38.7% increase from the previous week. The net purchase of ultra - long - term credit bonds over 5 years was 6.75 billion yuan, with a similar increase compared to the previous week [40]. - Funds sold a large amount of credit bonds, reaching 22.578 billion yuan. The net sales of bonds within 5Y were 12.738 billion yuan, and those over 5Y were 7.474 billion yuan [40]. 1.3 Low - Rating Transaction Proportion Declines - The proportion of transactions with a remaining maturity of over 3 years for urban investment bonds, industrial bonds, and secondary perpetual bonds was 30%, 29%, and 72% respectively, remaining at a high level. The proportion of low - rating transactions decreased, with a 1 - percentage - point decline in urban investment bonds with AA(2) and below, a 1 - percentage - point decline in industrial bonds with AA and below, and a 3 - percentage - point decline in secondary perpetual bonds with AA and below [49][53]. 2 Market Outlook: Redemption is Controllable, Seize Trading Opportunities 2.1 Redemption is Controllable, Seize Trading Opportunities - The market adjusted due to the impact of anti - involution policies on commodity prices and inflation expectations. Indicators such as the term structure of interest rate swaps showed a change in inflation expectations [57][61]. - There is no need to worry about negative feedback because the market's response ability has improved, and bank wealth management's focus on liquidity can prevent it. The asset shortage pattern persists, and interest rates are unlikely to have continuous and significant adjustments. Credit spreads are likely to be volatile, and investors should seize phased trading opportunities [4][7]. 2.2 Science and Technology Innovation Bonds Continue to Contribute Net Financing - In July, non - financial credit bond financing was good, with a net financing of 347.9 billion yuan, exceeding the levels of July in the previous two years [93]. 3 What to Buy in Credit? 3.1 Focus on High - Grade Secondary Perpetual Bonds for Trading, Weak - Quality Urban Investment Bonds for Coupon - For short - term secondary perpetual bonds, the price - to - value ratio is positive, while for medium - and long - term ones, it is negative. It is recommended that high - grade trading strategies focus on secondary perpetual bonds, and low - grade coupon strategies focus on urban investment bonds. The price - to - value ratio of short - term AAA secondary capital bonds to medium - term notes remains positive, and that of long - term ones fluctuates around 0 [100]. - The price - to - value ratio of short - term urban investment bonds to medium - term notes is positive, and that of long - term low - grade ones has rebounded rapidly, reaching the historical central level. Urban investment bonds still have an advantage in terms of bond selection scope [102]. 3.2 General Credit Coupon is More Advantageous - Currently, the proportion of urban investment bonds with a valuation above 2.3% is 19.8%, that of non - financial industrial bonds is 10.8%, and that of secondary perpetual bonds is 6.8%. From the perspective of coupon bond selection, general credit has a wider bond selection space [106]. 3.3 First - Level Issuance Statistics - No specific content provided in the output for further summary 3.4 Second - Level Valuation Change Details - No specific content provided in the output for further summary

Currency Exchange Rates - The three major RMB exchange rate indices all declined in the week of July 25, with the CFETS RMB index at 95.71, down 0.43% week-on-week; the BIS currency basket RMB index at 101.31, down 0.49%; and the SDR currency basket RMB index at 90.55, down 0.35% [1][2]. Market Trends - Market risk appetite strengthened significantly last week, leading to a 0.8% decline in the US dollar, which closed at 97.67. Non-USD currencies strengthened across the board, with the euro rising approximately 1% due to optimistic sentiments from US-EU negotiations and the European Central Bank's hawkish stance. The Japanese yen also gained 0.77% due to positive trade negotiation outcomes [5]. - Both onshore and offshore RMB exchange rates strengthened, with the onshore RMB closing at 7.1680 against the USD, up 86 points (0.12%) for the week, and the offshore RMB at 7.1679, up 134 points (0.18%) [5]. RMB Appreciation - Since April 14, the RMB has experienced a concentrated appreciation, moving from a midpoint exchange rate of 7.21 to 7.14 against the USD, an appreciation of nearly 1%. This appreciation occurred despite two rounds of dollar index rebounds during the same period [5]. - In the first seven months of 2025, both onshore and offshore RMB against the USD only saw slight depreciation in April, with appreciation trends in other months, resulting in a year-to-date increase of 2% for both [5]. Economic Indicators - The recent macroeconomic reports indicate that the domestic economy has shown stable and strong performance in the first half of the year, providing significant support for the RMB exchange rate. This is a key reason for the RMB's stronger performance amid the dollar's decline [6]. - The State Administration of Foreign Exchange reported a continuous recovery in net foreign exchange settlement, indicating improved supply and demand in the foreign exchange market, which may support the RMB exchange rate [6]. Future Outlook - Analysts suggest that the current RMB appreciation may be driven by changes in risk premiums, with future trends dependent on the US-China trade situation, counter-cyclical policies, and supply-demand dynamics [6][7]. - If the Federal Reserve significantly lowers interest rates next year, the potential demand for foreign exchange settlement could further support RMB appreciation [7].

Group 1 - Japan's potential return of $4 trillion in overseas funds due to interest rate changes could impact global asset prices positively, particularly benefiting the yen and Japanese stock market [1][5] - The U.S. Federal Reserve is expected to maintain interest rates, with a low likelihood of a rate cut in July, despite pressure from the White House [2][3] - The ongoing U.S.-Japan tariff negotiations are crucial, with preliminary agreements reached but details still under discussion, indicating a complex political landscape in Japan [3][4] Group 2 - Japan's ten-year bond yield has surpassed 1.6%, the highest since April 2008, indicating rising inflation pressures and the need for the Bank of Japan to normalize interest rates [4][5] - The Bank of Japan faces challenges with inflation at 3%, rising living costs, and the impact of tariffs, complicating its monetary policy decisions [4][5] - There is a significant amount of Japanese private sector funds, approximately $4.4 trillion, invested overseas, which may return to Japan as interest rates rise, affecting global capital flows [5][6]

Market Overview - The bond market experienced accelerated adjustments with increased redemption pressure during the week of July 21-25, leading to a tightening of market funds initially, followed by a loosening towards the end of the week [1] - The 10-year government bond yield broke above 1.70% for the first time since late May, indicating significant adjustment pressure [1] - The stock market showed positive sentiment, with indices reaching new highs for the year, which diverted some funds from the bond market [1] Weekly Review - On July 21, the LPR remained unchanged as expected, with a generally loose funding environment, but bond yields continued to rise [2] - The 10-year government bond yield rose to 1.677% on July 21, up 1.3 basis points from the previous week, and continued to increase throughout the week, reaching 1.745% by July 24 [2] - By July 25, after a significant net injection of over 600 billion yuan by the central bank, the bond market showed signs of recovery, with the 10-year government bond yield closing at 1.73% [2] Bond Futures - The bond futures market also saw fluctuations, with the 10-year government bond contract T2509 closing at 108.18, down 0.07% for the week [4] - Other maturities, such as the 5-year and 30-year contracts, also experienced declines, with weekly drops of 0.04% and 0.48% respectively [4] Convertible Bonds - The China Convertible Bond Index closed at 463.57, up 0.11% on July 25, with a weekly increase of 2.14% [5] - The trading volume for convertible bonds increased significantly, with a total of 2,443 million hands traded, amounting to 403.4 billion yuan, a week-on-week increase of 253 million hands [5] Bond Issuance - A total of 84 bonds were issued in the market, with a total scale of 939.805 billion yuan, an increase of 283.312 billion yuan from the previous week [6] - The Ministry of Finance issued 5 government bonds, with a total issuance scale increasing by 49.9 billion yuan compared to the previous week [8] Monetary Policy - The central bank conducted a total of 17,268 billion yuan in 7-day reverse repos, with a net injection of 6,018 billion yuan on July 25 [15] - The weighted average rate for R001 fell to 1.55%, while R007 rose to 1.69% due to month-end funding effects [17] International Market - U.S. Treasury yields showed slight fluctuations, with the 10-year yield falling to 4.38% [19] - European bond markets reacted to the European Central Bank's decision to maintain interest rates, leading to increased yields in the German and Italian bonds [22] Industry Insights - Analysts suggest that the recent market adjustments are primarily driven by changes in risk appetite, funding fluctuations, and shifts in trading positions [32] - The "anti-involution" measures and their impact on demand are critical factors to monitor for the bond market's medium-term outlook [32]

Group 1: Monetary Policy and Market Operations - The central bank conducted a reverse repurchase operation of 789.3 billion yuan with a fixed interest rate of 1.40% on July 25, resulting in a net injection of 601.8 billion yuan after accounting for 187.5 billion yuan maturing that day [2][5] - The interbank market saw a significant improvement in liquidity, with the overnight repurchase weighted average rate (DR001) dropping over 13 basis points to near 1.50% [5] - The latest overnight financing rate in the U.S. stands at 4.28% [7] Group 2: Interbank Certificates of Deposit and Bond Yields - The latest transaction rate for one-year interbank certificates of deposit among major banks is around 1.67%, showing little change from the previous day [9] - The yields on major interbank government bonds have shown varying trends, with the 30-year main contract dropping by 0.48%, while the 10-year and 5-year contracts fell by 0.07% and 0.04% respectively [13] Group 3: Economic and Fiscal Developments - The China Securities Regulatory Commission emphasized the importance of maintaining market stability and regulatory rigor amidst complex external and internal environments, aiming to support economic recovery and modernization [14] - The Ministry of Finance reported that national public budget expenditure for the first half of 2025 reached 14,127.1 billion yuan, a year-on-year increase of 3.4%, with significant growth in social security and employment spending by 9.2% [15] Group 4: Global Economic Outlook - The European Central Bank's survey indicates a decrease in inflation expectations for 2025 to 2.0% from 2.2%, and for 2026 to 1.8% from 2.0%, with tariffs expected to have a minor downward impact on inflation [17] Group 5: Bond Market Events - The Ministry of Finance has issued a third batch of ultra-long special government bonds totaling 67 billion yuan, with remaining funds to be issued in October [19] - A total of 2.6 trillion yuan in new local government bonds were issued in the first half of the year [19] - Recent negative events in the bond market include rating downgrades and delays in ratings for several issuers, indicating potential risks in the bond issuance landscape [21]

Report Investment Rating No investment rating information is provided in the report. Core Viewpoints - In the next week, funds will cross the month, but the central bank is expected to maintain net injections, potentially reducing the pressure on fund fluctuations. If the central bank provides sufficient support, there is a high probability of a smooth transition across the month, with DR001 likely to fluctuate between 1.35% - 1.55% [1][2]. - In the past week, funds experienced significant frictions due to factors such as the equity market absorbing inter - bank liquidity, large net government bond payments, and the central bank's continuous net withdrawals after the tax period. The tightening of funds was mainly driven by pressures within the banking system [2]. - The maturity pressure of certificates of deposit (CDs) will significantly decrease in the next week, with a maturity scale of only 37.67 billion yuan. If the pressure on the funds eases, CD rates may slightly decline when crossing the month [2]. - In the past week, funds sold off bonds across all varieties, with a rapid shift in sentiment. However, the willingness of allocation - oriented investors such as banks, insurance companies, and wealth management firms to absorb bonds is not weak, suggesting that the current market adjustment may present investment opportunities [3]. Summary by Directory 1 Liquidity Tracking 1.1 Central Bank Operations - In the past week (7/21 - 7/25), the central bank's open - market operations resulted in a net liquidity injection of 10.95 billion yuan, including 20 billion yuan in long - term liquidity and a net withdrawal of 9.05 billion yuan in short - term liquidity. As of 7/25, the central bank's reverse repurchase balance was 1.66 trillion yuan, slightly higher than the seasonal average [10]. - In the next week (7/28 - 8/1), 1.66 trillion yuan of reverse repurchases will mature. Considering the month - end period, the central bank may maintain a small net injection [10]. - In July, the central bank injected a total of 30 billion yuan in long - term liquidity, including 10 billion yuan in net MLF injections and 10 billion yuan each in 3M and 6M outright reverse repurchases [11]. 1.2 Government Bond Issuance - In the past week, the expected net government bond payment was 27.1 billion yuan, with treasury bonds contributing 1.07 billion yuan and local government bonds 26.02 billion yuan. In the next week, the expected net payment is 28.76 billion yuan, with a smaller overall pressure. Treasury bond net payment is expected to be - 2 billion yuan, while local government bonds will contribute 30.76 billion yuan. The net payment pressure will be higher on Tuesday, with a single - day net payment of 12.67 billion yuan [13]. 1.3 Bill Market - In the past week, bill rates declined significantly. As of 7/25, the 3M direct and transfer discount rates for national - owned banks were 1.25% and 1.10% respectively, down from 1.30% and 1.23% on 7/18. The 6M rates were 0.79% and 0.72% respectively, down from 0.87% and 0.81% on 7/18. Currently, bill rates are still significantly weaker than the seasonal average, indicating slow credit demand recovery [22]. 1.4 Fund Review - In the past week, fund fluctuations increased significantly, with daily frictions intensifying. After the tax period, the central bank continuously withdrew funds. Although the funds were relatively loose on Monday and Tuesday, with DR001 closing at 1.3144% on Tuesday, the situation fluctuated rapidly from Wednesday to Friday. The fund sentiment index reached a maximum of 58 on Thursday morning and 57 on Friday morning, but funds eased significantly in the late afternoon on Thursday and after 10 am on Friday [24]. - Inter - bank fund price fluctuations were larger than those in the exchange market, and the 7 - day fund price fluctuations were greater than overnight. On 7/25, DR001 rose 6.08bps to 1.52%, DR007 rose 14.56bps to 1.65%, R001 rose 6.41bps to 1.55%, and R007 rose 18.65bps to 1.69% [29]. - The term spread widened, and the market spread narrowed. Compared to 7/18, on 7/25, the R007 - R001 spread rose 12.24bps to 14.15bps, the R007 - DR007 spread rose 4.09bps to 4.14bps, and the GC007 - R007 spread fell 4.45bps to - 5.67bps [30]. - The proportion of overnight fund transactions in the inter - bank market decreased significantly as the month - end approached. The net lending of the banking system decreased significantly, with large banks experiencing the most significant decline. The net borrowing demand of core non - bank institutions also decreased significantly, while the net lending of core non - bank net lenders increased [35][38]. 1.5 Certificates of Deposit - In the past week (7/21 - 7/27), the total issuance of CDs was 51.67 billion yuan, with a net financing of - 55.98 billion yuan. The net financing scale declined significantly. As of 7/27, the cumulative net financing of CDs for the year was 1.32 trillion yuan [50]. - The issuance scale of CDs by different entities in the past week ranked as follows: city commercial banks (17.48 billion yuan)> state - owned banks (16.38 billion yuan)> joint - stock banks (12.92 billion yuan)> rural commercial banks (4.15 billion yuan). The weighted issuance term of CDs decreased to 0.61 years from 0.69 years last week [50]. - The issuance rates of CDs for national - owned and joint - stock banks increased across all tenors. The secondary - market CD yields also adjusted significantly. On 7/25, the 1 - year AAA CD yield rose 5.75bps to 1.6750% compared to 7/18 [53]. - In the next four weeks, the CD maturities will be 37.67 billion yuan (7/23 - 8/3), 59.82 billion yuan (8/4 - 8/10), 90.71 billion yuan (8/11 - 8/17), and 79.47 billion yuan (8/18 - 8/24) respectively, indicating controllable maturity pressure. In the next week, the maturity pressure will be higher on Tuesday and Wednesday [55]. 2 Institutional Behavior Tracking 2.1 Secondary Market Transactions - Large banks slightly increased their purchases of short - term treasury bonds. In the past week, funds net sold 20.76 billion yuan of interest - rate bonds, while rural commercial banks net bought 25.73 billion yuan of interest - rate bonds [60]. - Wealth management subsidiaries and other products were the main buyers of CDs, while city commercial banks, rural commercial banks, funds, and securities firms were the main sellers [60]. - Funds quickly switched from buying to selling credit bonds, while the buying power of other institutions such as wealth management firms remained relatively stable. Insurance companies were the main buyers of credit bonds with a maturity of over 5 years [60]. - Funds' net selling of secondary - tier bonds also increased rapidly. For secondary - tier bonds with a maturity of less than 2 years, funds switched to large - scale net selling on Friday, with a net selling of 370 million yuan in the past week. For 2 - 5 - year secondary - tier bonds, funds' demand also declined significantly [60]. 2.2 Institutional Duration - The median duration of medium - and long - term bond funds fluctuated. On 7/25, the 10 - day moving average of the median duration was 4.18 years, slightly higher than 4.13 years on 7/18, but it declined significantly on Friday [62]. - The trading duration of general credit bonds decreased, while that of secondary - tier bonds increased. On 7/25, the 5 - day moving average of the trading duration of urban investment bonds decreased to 2.43 years, and that of industrial bonds decreased to 3.51 years, while the trading duration of secondary - tier bonds increased to 3.16 years [66]. 2.3 Institutional Leverage - The bond market leverage ratio was estimated to be 107.16% in the past week, basically unchanged from last week's 107.04% [68].

Monetary Market Overview - The central bank conducted a net liquidity withdrawal of 70.5 billion CNY through OMO this week, while on Friday, it injected 200 billion CNY via MLF[3] - The average daily transaction volume of pledged repos rose by 0.45 trillion CNY to 7.70 trillion CNY, although it fell below the previous week by Friday[3] - The funding gap index dropped to -5012 on Tuesday but rebounded to -764 on Thursday, before falling again to -918 on Friday, remaining above last week's -3145[3] Bond Market Insights - The actual net payment of government bonds this week was 271 billion CNY, with cumulative new general bonds issued in 2025 reaching 517.4 billion CNY and new special bonds at 2.5944 trillion CNY[4] - The bond market experienced increased volatility, with concerns about a potential shift in monetary policy due to the central bank's actions[21] - The issuance scale of government bonds in July was 2.44 trillion CNY, with a net financing scale of 1.25 trillion CNY, which is approximately 150 billion CNY lower than expected[4] Institutional Behavior - Large banks' net financing fell below 4 trillion CNY, while the overall rigid net financing from banks reached a new low since late May[3] - Non-bank rigid financing saw a decrease followed by an increase, remaining above last week, with money market funds and other products showing an upward trend[3] - The cross-month progress in the interbank market was 19.9%, slightly below the 20-24 year average by 0.3 percentage points, but higher than the same period in 2022 and 2023[19]

Group 1 - The U.S. stock market, including the S&P 500 and Nasdaq, reached historical highs on July 25, while the Shanghai Composite Index also surpassed 3600 points, marking an annual peak [1] - The focus on tariff issues is expected to return in August, potentially impacting the current global equity market rally [1] - Major international investment banks have issued warnings regarding increased risks in the U.S. stock market, with indicators of market speculation reaching historical highs, second only to the 2000 internet bubble and the 2021 retail trading frenzy [2][3] Group 2 - Deutsche Bank highlighted that the scale of margin debt, which investors use to borrow money for stock trading, has historically exceeded $1 trillion, indicating a "heated" market [3] - Bank of America’s strategist reiterated the risk of a bubble, attributing it to loose monetary policies and relaxed financial regulations, suggesting that increased retail participation leads to greater liquidity and volatility [3] - The Federal Reserve's potential interest rate cuts are seen as the only factor that could sustain the U.S. bull market amid rising market risks, with Goldman Sachs economists predicting a rate cut in September, earlier than previously expected [3] Group 3 - Recent political changes in Japan, including the ruling coalition's defeat in the House of Councillors election, have led to a decline in Prime Minister Shigeru Ishiba's approval ratings [4] - Following the election loss, Ishiba is expected to resign after assessing the reasons for the defeat, leading to a presidential election within the ruling party [5]

Report Summary 1. Report Industry Investment Rating No relevant information provided. 2. Core Viewpoints - On July 24, the funding situation tightened further, with major repo rates rising significantly. Affected by the increasing expectation of industrial product price hikes, the stock market rally, and the tightened funding situation, the bond market weakened further. The convertible bond market followed the equity market higher, with most convertible bond issues rising. Yields on U.S. Treasuries across all maturities generally increased, and yields on 10 - year government bonds in major European economies mostly rose significantly [1]. 3. Summary by Directory 3.1 Bond Market News 3.1.1 Domestic News - President Xi Jinping met with European Council President Costa and European Commission President von der Leyen, emphasizing the importance of China - EU relations and the principles for future development [3]. - The central bank and the Ministry of Agriculture and Rural Affairs jointly issued an opinion to increase financial resource input in key areas of rural revitalization and improve rural basic financial services [4]. - The draft amendment to the Price Law was open for public consultation, covering aspects such as improving government pricing, clarifying the criteria for identifying improper price behaviors, and strengthening legal responsibilities for price violations [6]. - As of July 24, 735 billion yuan of central budget - internal investment in 2025 had been basically allocated, focusing on multiple fields such as modern industrial systems and infrastructure [7]. - The central bank announced a 400 - billion - yuan MLF operation on July 25, with a net injection of 100 billion yuan, marking the fifth consecutive month of increased roll - overs [8]. 3.1.2 International News - The European Central Bank maintained interest rates unchanged, waiting for the clarity of U.S. tariff policies. Since June 2024, it has cut interest rates eight times [9]. - In July, the U.S. Markit manufacturing PMI fell into contraction again, but the recovery of the service sector offset the decline. The composite PMI index rose, but concerns about the business environment persisted [10]. 3.1.3 Commodities - On July 24, international crude oil futures prices turned up, and international natural gas prices rose slightly. COMEX gold futures fell [11]. 3.2 Funding Situation 3.2.1 Open Market Operations - On July 24, the central bank conducted 331 billion yuan of 7 - day reverse repurchase operations, with a net withdrawal of 119.5 billion yuan due to 450.5 billion yuan of reverse repurchase maturities [13]. 3.2.2 Funding Rates - On July 24, due to continuous net withdrawals by the central bank, the funding situation tightened further, and major repo rates rose significantly. For example, DR001 rose 28.05bp to 1.652%, and DR007 rose 9.33bp to 1.576% [14]. 3.3 Bond Market Dynamics 3.3.1 Interest - rate Bonds - **Spot Bond Yield Trends**: On July 24, affected by multiple factors, the bond market weakened further. Yields on the 10 - year Treasury bond active issue 250011 and the 10 - year China Development Bank bond active issue 250210 increased [17]. - **Bond Tendering Situation**: Various bonds were tendered on July 24, with details on issuance scale, winning yields, and subscription multiples provided [18]. 3.3.2 Credit Bonds - **Secondary - market Transaction Anomalies**: On July 24, the trading price of one industrial bond, "H0 Zhongnan 02", deviated by more than 10%, falling by over 28% [19]. - **Credit Bond Events**: Multiple events occurred, including some companies being included in the list of dishonest被执行人, delayed rating report disclosures, rating withdrawals, forced interest - payment events, ineffective bondholder meetings, and companies being investigated by the CSRC [20]. 3.3.3 Equity and Convertible Bonds - **Equity and Convertible Bond Indexes**: On July 24, the three major A - share stock indexes had mixed performances, with the Shanghai Composite Index closing above 3600 points. The convertible bond market followed the equity market higher, with most convertible bond issues rising [21]. - **Convertible Bond Tracking**: On July 25, Guanghe Convertible Bond was listed. On July 24, some convertible bonds announced proposals to lower conversion prices or were expected to trigger conditions for lower conversion prices, and some were about to meet early redemption conditions [24]. 3.3.4 Overseas Bond Markets - **U.S. Bond Market**: On July 24, yields on U.S. Treasuries across all maturities generally increased, and the yield spread between 2 - year and 10 - year U.S. Treasuries remained unchanged, while the spread between 5 - year and 30 - year U.S. Treasuries narrowed [25][26]. - **European Bond Market**: On July 24, the yield on the 10 - year British government bond declined, while yields on 10 - year government bonds in other major European economies generally rose significantly [28]. - **Daily Price Changes of Chinese - funded U.S. Dollar Bonds**: As of the close on July 24, price changes of various Chinese - funded U.S. dollar bonds were provided, including those of companies like Sunac China and Lenovo Group [30].

Group 1 - The liquidity in the interbank market improved as the tax period effects diminished, with the central bank's net injection of 102.8 billion yuan on July 18 [1] - The central bank continued to net withdraw funds throughout the week, with a net withdrawal of 555 billion yuan on Monday and 2.477 billion yuan on Tuesday [1] - On Thursday, the funding rates increased significantly, with overnight and 7-day funding rates inverted, and the central bank net withdrew 119.5 billion yuan [1] Group 2 - The U.S. Congressional Budget Office estimated that the recent tax and spending bill signed by President Trump will increase the U.S. deficit by 3.4 trillion dollars over the next ten years [2] - The bill includes cuts to Medicaid and provisions that could lead to 10 million Americans losing health insurance by 2034 [2] - The National Association of Realtors reported a 2.7% month-over-month decline in existing home sales in June, reaching an annualized total of 3.9 million units, the lowest since September of the previous year [2] Group 3 - The National Development and Reform Commission held a meeting to discuss the "14th Five-Year Plan," emphasizing the importance of enterprise innovation and collaboration between state-owned and private enterprises [3] - The recent market trends indicate a recovery in risk appetite, impacting the performance of bonds, while the internal logic for a bullish bond market remains due to weakened financing demand and debt leverage [3] - The supply-side policies mainly affect upstream industries, while midstream and downstream sectors remain weak, suggesting potential for further easing in monetary policy [3] Group 4 - The National Development Bank ETF (159650) targets policy financial bonds, which are characterized by high credit ratings, large volumes, and good liquidity, making them attractive investment options [4] - The ETF offers good liquidity, low credit risk, and reasonable risk-return ratios, serving as a suitable tool for short-duration allocations [4]