Core Viewpoint - The article discusses the current state of the bond market, highlighting a balanced and slightly loose funding environment, with a focus on the recent movements in interest rates and the implications for investors [1][3]. Group 1: Market Conditions - The central bank conducted a 7-day reverse repurchase operation of 161.2 billion, with 202.5 billion maturing today, resulting in a net withdrawal of 41.3 billion [1]. - The funding rates have decreased, with DR001 stabilizing around 1.37% and DR007 dropping to approximately 1.49% [1]. - The 10-year government bond yield opened at 1.6405% and fluctuated, reaching a low of 1.6365% before slightly recovering to 1.638% [3]. Group 2: Economic Indicators - The June LPR remained unchanged, aligning with expectations, while the June EPMI showed weakness at 47.9, a decrease of 3.1 from the previous month [2][3]. - The bond market sentiment was stable, with a notable shift in trading behavior as investors moved away from active 10-year bonds to older bonds and longer maturities [3]. Group 3: Market Dynamics - There has been a recent "battle of narratives" between bulls and bears in the market, with bulls gaining an upper hand due to rumors of the central bank's bond purchases at the end of the month [4]. - The trading volume for the 10-year government bond was low, with less than 600 transactions throughout the day, indicating a shift in investor focus [3].