Bond market major adjustment, medium and long-term bond funds ushered in a comprehensive pullback

On August 12th, Jin10 Data reported that according to Wind data, both Bosera CSI 30-Year Treasury Bond ETF and Pengyang ChinaBond 30-Year Treasury Bond ETF fell more than 1%. Bosera CSI 30-Year Treasury Bond ETF, established on March 20th this year, fell by 1.18%, setting a record for the largest single-day fall since its establishment. CITIC Securities analysis believes that today’s bond market adjustment may be a continuation of last week’s market fall. The Central Bank has repeatedly warned of the risk of long-term interest rates in recent times and reminded of the pullback risk of bond-based wealth management products. Perhaps it does not want interest rates to fall too quickly, but it also does not want interest rates to adjust significantly. Xinyuan Fund believes that the Central Bank is following the bond market, hoping to break the overheated market sentiment and the consistent long-term market expectations, and guide the bond market yield to operate healthily around the fundamentals. Overall, Xinyuan Fund expects weak short-term sentiment in the bond market, hindered downward yield, but low risk of significant yield adjustment. In the short term, it is recommended to observe more and act less, follow the large-scale securities sales of major banks, the Central Bank’s regulatory attitude, and the marginal changes in liquidity.