Core Viewpoint - The bond market is experiencing a weak consolidation, with a gradual stabilization in the yield curve following recent policy impacts, and a potential new round of interest rate cuts expected in the money market [1][8]. Market Performance - The majority of government bond futures closed lower, with the 30-year main contract up 0.02% at 120.370, while the 10-year main contract fell 0.01% to 109.060 [2]. - The interbank yield on major bonds mostly rose by about 0.5 basis points, with the 10-year policy bank bond yield increasing by 0.35 basis points to 1.7025% [2]. International Bond Market - In North America, U.S. Treasury yields collectively rose, with the 2-year yield increasing by 10.99 basis points to 3.880% [3]. - In Asia, Japanese bond yields continued to rise, with the 10-year yield up 3.8 basis points to 1.363% [4]. Primary Market - The Ministry of Finance issued 1-year bonds with a scale of 170 billion, at an issuance rate of 1.3766%, and a bid-to-cover ratio of 2.88 times [5]. - The issuance of 30-year bonds totaled 71 billion, with an issuance rate of 1.8463% and a bid-to-cover ratio of 3.17 times [5]. Liquidity Conditions - The central bank conducted a 770 billion yuan reverse repurchase operation, with a fixed rate of 1.40%, resulting in a net injection of 770 billion yuan for the day [6]. - Short-term Shibor rates collectively declined, with the overnight rate dropping to 1.497%, the lowest since January 2025 [6]. Institutional Perspectives - Institutions believe that the recent monetary policy adjustments, including rate cuts and reserve requirement ratio reductions, are aimed at alleviating the pressure on financial institutions' net interest margins and are expected to lead to a new round of interest rate reductions in the bond market [8]. - The overall trend indicates that short-term rates are likely to decline, which will also pull down long-term rates, suggesting a continued downward trajectory for bond yields [8].