Group 1 - The report highlights a significant increase in the borrowing volume of 30Y government bonds over the past 30 trading days, with a year-on-year growth of 133% to 278% for active and secondary active bonds, indicating a strong demand for long-term bonds as a hedging and position adjustment tool in a volatile market [7][8][10] - The borrowing volume of 10Y government bonds showed a pattern of "year-end increase, early-year decline," with a year-on-year increase of 135.34% in December, followed by a decline of 22.54% in January, suggesting a cooling demand for mid-term bonds [10][12] Group 2 - In the funding market, there is a trend of expanding borrowing and contracting lending, with an overall decrease in leverage ratios across institutions, while overnight trading ratios have increased [14][15] - The primary market for government and policy financial bonds has shown mixed performance, with variations in bidding multiples and spreads between primary and secondary markets [19][20] Group 3 - The secondary market has seen active trading, particularly in 30Y government bonds, with a notable increase in turnover rates, while trading behaviors among different types of institutions have diverged [25][26] - Large banks have shifted to net buying in the interbank certificate of deposit market, while securities companies have significantly increased net selling [27][29]

Group 1: Core Insights - The report indicates a significant increase in net buying of 7-10 year long-term bonds and bonds over 10 years, with weekly net buying intensity reaching the second highest and highest levels of the year respectively [1] - The overall funding market has warmed up, with both net inflow and outflow amounts rising, and an increase in the leverage ratio in the interbank bond market [2] - The secondary market shows improved activity, particularly in ultra-long bonds, with a rise in turnover rates for 30-year government bonds and an increase in average duration for medium to long-term pure bond funds [3] Group 2: Market Dynamics - In the primary market, there was a noticeable "marginal" sentiment, with an increase in the issuance of government bonds and a rise in the bid-to-cover ratio for government bonds, while the ratio for policy financial bonds decreased [2] - Major institutional behaviors indicate that funds are aggressively allocating to long-term and ultra-long-term bonds, while rural commercial banks are selling off across all maturities, particularly in the 7-10 year and over 10-year segments [3] - The scale of wealth management products in June did not show the typical seasonal decline, with a slight overall decrease in the week of June 15, while fund sizes increased significantly compared to previous months [4]

Funding Market - The large banks' lending scale rapidly increased in the first half of last week but declined after the reserve requirement ratio cut took effect [1] - The overall funding market cooled down in the past week, with net borrowing amounts turning negative for major borrowers and net lending amounts rising for major lenders [1] - The total repo balance in the interbank market increased, while the leverage ratio in the interbank bond market remained stable [1] Primary Market - The issuance heat in the primary market showed divergence, with one 10-year government bond, two 10-year policy bank bonds, and one 10-year other policy financial bond issued in the past week [1] - The bid-to-cover ratio for government bonds and policy bank bonds decreased, while it increased for other policy financial bonds [1] - The price spread between primary and secondary markets narrowed for government and policy bank bonds, while it widened for other policy financial bonds [1] Secondary Market - The overall heat in the secondary market improved, with an increase in the turnover rate of ultra-long bonds and stronger buying interest for short-term bonds [2] - The total borrowing volume of bonds increased, and the proportion of active bonds rose [2] - Major buyers increased net purchases of short and medium-term bonds while reducing net purchases of long and ultra-long bonds [2] Wealth Management and Fund Scale - Since May, the growth of wealth management scale has been weaker than historical averages, with a cumulative increase of 164.4 billion yuan as of May 18 [3] - The fund scale (net asset value) increased by 83.2 billion yuan in May, with equity and bond funds increasing by 56.1 billion yuan and 25.3 billion yuan respectively [3] - The issuance of new bond funds saw a significant rise compared to the previous week [3]