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IN00309

06886

<p>Bond market sentiment is high, with national bond yields approaching the "1%" era. Huatai Securities pointed out that fund rates and term spreads are the core pricing logic, and the central bank's operations are closely watched. Recently, the 10-year national bond yield has dropped to 2.04%, only 4 basis points away from 2%. Despite the strong performance of the bond market, investors still face their own concerns, especially regarding the pressure on returns from insurance and wealth management products. In the long run, the decline in deposit rates and poor stock market performance continue to give wealth management products an advantage</p>

- During the past two weeks, intensive visits to various institutional investors revealed a surge in bond market sentiment and record-low interest rates. Factors contributing to the rate decline include weak economic data, pending fiscal stimulus in September, escalating rate cut expectations, changes in annual economic targets, and limited central bank intervention to curb rate declines.
- Despite the bond market's strong performance, investors harbor concerns and dilemmas. Insurers struggle with rapid rate declines, inadequate opportunities for strategic asset allocation, and regulatory pressures to link fixed rates with market rates. Wealth management faces challenges in meeting performance benchmarks, leading to client redemptions.
- Looking ahead, uncertainties persist in pricing current rates, identifying new rate anchors, assessing future bond market risks, and anticipating institutional behaviors like when major banks will cease significant net purchases of short-term government bonds. Investors grapple with adapting to continuous rate declines amidst fundamental guidance and central bank influences.

Where is the new "anchor" for interest rates?