Core Viewpoint - The bond market is experiencing adjustments due to the "see-saw effect" triggered by rising stock markets, but a significant decline in the bond market is unlikely in the second half of the year [1][2][3] Group 1: Market Performance - As of July 28, the average annualized yield of wealth management products was 3%, a decrease of 42 basis points from the end of June; pure fixed-income products saw a more pronounced decline, with yields dropping to 2.23%, down 54 basis points [2] - The 10-year government bond yield increased from 1.65% at the beginning of July to 1.74% by July 25, leading to a decline in bond prices and consequently affecting the net value of wealth management products [2][3] Group 2: Future Outlook - Analysts believe that the likelihood of a significant decline in the bond market is low due to the continuation of a moderately loose monetary policy and the need for low interest rates to support the economy [2][3] - The current monetary policy environment lacks strong drivers for a substantial drop in bond prices, despite factors that may increase volatility [2][3] Group 3: Investment Strategies - Wealth management companies are advised to upgrade their product systems and adopt "fixed income plus" strategies to enhance yields by including equity assets [1][4] - To stabilize investor sentiment and avoid irrational large redemptions, several wealth management subsidiaries have communicated that the current bond market adjustment is within a reasonable range and do not warrant excessive panic [3][4] - Recommendations for investors include shortening investment durations, diversifying product types, and increasing allocations to cash management and mixed-asset products to mitigate risks associated with pure fixed-income investments [4]