Market Overview - The bond market experienced narrow fluctuations last week (2025.10.20-2025.10.24), with the 1-year government bond yield rising by 2.82 basis points to 1.47%, the 10-year yield up by 2.40 basis points to 1.85%, and the 30-year yield increasing by 1.24 basis points to 2.21% [3][14] - Factors such as the easing of China-US trade tensions boosted stock market sentiment, leading to pressure on the bond market, which displayed an overall oscillating pattern [3][14] - The bond market may present trading opportunities, supported by two factors: reduced catalysts for significant stock market increases and the typical "allocation rush" for bonds in the fourth quarter due to institutional year-end performance assessments [14] Fund Performance Tracking - The Money Market Enhanced Index rose by 0.03% last week, with a cumulative return of 4.22% since inception [4][17] - The Short-term Bond Fund Index also increased by 0.03%, achieving a cumulative return of 4.35% since inception [5][17] - The Mid-to-Long-term Bond Fund Index saw a rise of 0.08%, with a cumulative return of 6.44% since inception [6][17] - The Low Volatility Fixed Income + Fund Index increased by 0.23%, with a cumulative return of 4.18% since inception [7][17] - The Medium Volatility Fixed Income + Fund Index rose by 0.73%, achieving a cumulative return of 5.69% since inception [8][17] - The High Volatility Fixed Income + Fund Index increased by 0.75%, with a cumulative return of 7.56% since inception [9][17] - The Convertible Bond Fund Index rose by 1.67%, achieving a cumulative return of 21.79% since inception [10][17] - The QDII Bond Fund Index decreased by 0.03%, with a cumulative return of 10.54% since inception [11][17] - The REITs Fund Index increased by 0.69%, achieving a cumulative return of 31.92% since inception [12][17] Bond Yield Trends - US Treasury yields fluctuated last week (2025.10.20-2025.10.24), with the 1-year yield rising by 3 basis points to 3.58%, the 2-year yield up by 2 basis points to 3.48%, and the 10-year yield increasing by 2 basis points to 4.02% [15] - The market's risk aversion was heightened due to factors such as the ongoing US government shutdown, credit pressures, and geopolitical risks, followed by disappointing US CPI data that reinforced rate cut expectations [15] REITs Market Activity - The CSI REITs Total Return Index rose by 0.16% last week, closing at 1045.13 points, with the environmental and data center sectors leading the gains [15] - As of October 24, 2025, 18 public REITs have been successfully issued this year, with two new public REITs making progress last week [15]

Market Overview - Bond yields exhibited volatility during the week of July 28 to August 1, 2025, with the China Bond Composite Wealth Index (CBA00201) rising by 0.15% and the China Bond Composite Full Price Index (CBA00203) increasing by 0.11% [13] - Interest rate bonds across various maturities saw a downward trend, with long-term bonds performing slightly weaker than short-term ones [13] - Credit bonds also experienced a decline in yields across most maturities and ratings, with credit spreads showing narrow fluctuations [13] Policy Impact - The Ministry of Finance and the State Administration of Taxation announced a new VAT policy on bond interest income, effective August 8, 2025, which will impose VAT on newly issued government bonds, local government bonds, and financial bonds [17] - The policy adopts a "new and old distinction" approach, maintaining VAT exemption for bonds issued before August 8, 2025, until maturity [17] - This shift aims to enhance tax fairness and optimize market mechanisms, as the previous exemption policy has fulfilled its purpose of boosting investor interest [17][19] Fund Market Dynamics - The REITs market rebounded, with the CSI REITs Total Return Index rising by 1.25% during the week, indicating a recovery in market sentiment [16] - New REITs listings included the first central enterprise natural gas power public REIT, which saw a first-day increase of 19.9%, and a logistics REIT that rose by 27.5% [16] - The public fund market is adjusting to the new VAT policy, which may increase the tax burden on financial institutions while providing a relative advantage to public fund products [18] Fund Performance Tracking - The Money Market Enhanced Index rose by 0.03%, with a cumulative return of 3.88% since inception [3] - Short-term bond funds increased by 0.06%, with a cumulative return of 4.06% since inception [4] - Medium to long-term bond funds rose by 0.13%, achieving a cumulative return of 6.45% since inception [5] - REITs funds saw a significant increase of 1.99%, with a cumulative return of 38.17% since inception [10]