Group 1 - The bond market is currently facing adjustment pressure, with yields generally rising; from July 7 to July 16, the 10-year and 30-year government bond yields increased by 2 basis points (bp) and 3 bp to 1.66% and 1.87%, respectively [1] - The recent adjustment in stock dividend rates has alleviated the pressure on bond market valuations, making the risk-reward ratio more favorable; the dividend yield of the CSI 300 index dropped from an average of 3.47% in May to 3% on July 14 [1] - The liquidity environment is relatively stable, with social financing growth expected to peak around 9.0% in July before trending down to approximately 8.2% by year-end, which limits disturbances to the bond market [2] Group 2 - The recent tightening of the funding environment has led to profit-taking in the equity market, causing credit spreads in certain bonds to widen; for instance, from July 7 to July 14, the credit spreads for 5-year secondary bonds AA+/AAA- and 3-year local government bonds AA/AA+ widened by 2.3 bp/1.4 bp and 2.0 bp/3.0 bp, respectively [3] - Despite the current adjustments, the core logic of secondary bonds remains intact, as the "amplifier" property of interest rate fluctuations persists in a liquidity easing environment [3]