Market Performance - The majority of government bond futures closed lower, with the 30-year main contract down 0.04% at 121.290, and the 10-year main contract down 0.01% at 109.155 [1] - The yields on major interbank bonds mostly increased, with the 30-year government bond yield rising by 0.1 basis points to 1.8380%, and the 10-year government bond yield increasing by 0.15 basis points to 1.7070% [1] Funding Situation - The central bank announced a 7-day reverse repurchase operation of 220.5 billion yuan at a fixed rate of 1.40%, with the same amount being the winning bid [2] - The overall funding situation is relatively loose, with overnight pledged repo rates slightly declining but remaining around 1.37%, while the 7-day pledged repo rate increased by over 1 basis point [2] News Developments - Recent reports indicate that the scope of special bonds is expanding, with new uses including investment in government investment funds [3] - The new special bond issuance is expected to accelerate in the second half of the year, focusing on land acquisition and settling local government debts [3] Operational Suggestions - Recent high-frequency data shows signs of weakening in exports, while the central bank's signals of support and declining funding rates are favorable for the bond market [4] - The overall bond rates are expected to maintain a downward trend, with a potential breakthrough at the 1.6% level for the 10-year government bond yield if the central bank resumes bond purchases [4]

Market Performance - The performance of government bond futures showed divergence, with the 30-year main contract rising by 0.35% and the 10-year main contract increasing by 0.09%, while the 5-year and 2-year main contracts remained unchanged [1] Funding Conditions - The central bank announced a 173.8 billion yuan reverse repurchase operation on June 9, with a fixed rate of 1.40%, resulting in a net injection of 173.8 billion yuan for the day. The overnight pledged repo rate fell below 1.4%, indicating a more relaxed funding environment [2] Economic Fundamentals - In May, the CPI decreased by 0.2% month-on-month and by 0.1% year-on-year, while the core CPI rose by 0.6% year-on-year. The PPI fell by 0.4% month-on-month and by 3.3% year-on-year. Exports in May increased by 4.8% year-on-year, while imports decreased by 3.4%, resulting in a trade surplus of 103.22 billion USD [3] Operational Recommendations - The low inflation data and weaker-than-expected export figures suggest a cautious outlook. The market is expected to focus on future tariff negotiations and fundamental changes. The bond market may strengthen due to a more relaxed funding environment, with the 10-year government bond yield projected to fluctuate between 1.60% and 1.75% and the 30-year yield between 1.80% and 1.95% [4]