Core Viewpoint - The recent easing of US-China tariff negotiations has led to increased volatility in the bond market, particularly in long-term interest rates [1][2]. Bond Market Outlook - Following two consecutive years of declining bond markets in 2023 and 2024, current bond yields are relatively low, and the bond market is unlikely to replicate the previous two years' downward trend in 2025. Investors should lower their expected returns from bond funds [4]. - In the context of narrow yield spreads, the value of medium- to short-term bond investments is highlighted, with a recommendation to focus on high-quality short-term and medium-term bond funds [4][5]. Performance of Medium- to Short-Term Bonds - The bond market has shown significant differentiation, with bonds maturing in five years or less performing well, while long-term bonds exhibit volatility. This is attributed to the central bank's unexpected rate cuts, which have lowered the funding rate to around 1.5% [6]. - The performance of medium- to short-term products is expected to remain strong, with a focus on short-term bonds that offer a clear carry opportunity [7]. Investment Recommendations - Investors are advised to prioritize medium- to short-term credit bonds as a core strategy, while also considering opportunities in long-term bonds during market adjustments [7]. - Specific recommendations include focusing on short-term bonds with positive carry, such as 3-5 year municipal bonds, while waiting for favorable conditions to increase holdings in long-term bonds [7]. Fund Characteristics - The "Huitianfu Fengsui 60-Day Holding Period Bond Fund" is highlighted for its advantages, including being a pure bond fund with low drawdown risk, focusing on high-rated credit bonds, and maintaining a low fee structure [8][9][10]. - The fund manager, Li Wei, has extensive experience in managing bond portfolios and employs strategies to optimize returns while controlling risks [14][15]. Manager's Strategy - Li Wei emphasizes a combination of credit and interest rate strategies, utilizing futures for hedging and adjusting the portfolio based on macroeconomic analysis and market psychology [16][17]. - The fund's approach includes leveraging the yield spread and optimizing the bond selection process to enhance the portfolio's performance [17].