--- title: "Volatile Market Capital Preservation Guide: Utilizing the \"Thursday Rule\" for Painless Arbitrage" type: "News" locale: "en" url: "https://longbridge.com/en/news/280556977.md" description: "In a volatile market, investors can use the \"Thursday Rule\" for painless arbitrage. Recently, the market rebounded after a significant drop, but confidence remains low, and it is expected to continue fluctuating in the short term. The market usually experiences a sharp decline every Friday, as the situation between the U.S. and Iran may worsen, leading to early capital withdrawal. Investors are advised to pay attention to the China Merchants CSI Treasury and Policy Bank Bond ETF (511580), whose T+0 trading mechanism makes the \"Thursday reverse repurchase + Friday purchase\" strategy practically valuable, allowing for the locking in of weekend coupon income. This ETF has maintained positive returns for four consecutive years, with an annualized volatility of less than 0.3%" datetime: "2026-03-26T02:44:07.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/280556977.md) - [en](https://longbridge.com/en/news/280556977.md) - [zh-HK](https://longbridge.com/zh-HK/news/280556977.md) --- # Volatile Market Capital Preservation Guide: Utilizing the "Thursday Rule" for Painless Arbitrage After a continuous decline, the market has welcomed a broad-based rally in the past two trading days, although it has been on low volume, indicating that confidence is not very strong. Today, it has returned to a state of fluctuation. From the perspective of the external environment, the Middle East issue is constantly reversing, and the market may continue to fluctuate in the short term. It is also worth noting that the market has generally experienced significant declines every Friday recently, as the US-Iran issue tends to worsen over the weekend, prompting funds to choose to withdraw in advance. Taking advantage of today being Thursday, and having recovered some capital over the past two days, friends who have profit-taking needs might consider the Thursday reverse repurchase operation of the China Merchants CSI Treasury and Policy Bank Bond ETF (511580). Most people are accustomed to letting funds sit in their accounts or simply doing a reverse repurchase. However, from the perspective of capital efficiency, this approach has a clear "time gap"—especially during weekends, holidays, and other special periods, where the time funds are occupied often mismatches with the interest calculation period. **The emergence of the China Merchants CSI Treasury and Policy Bank Bond ETF (511580) somewhat fills this gap.** From the underlying product perspective, the China Merchants CSI Treasury and Policy Bank Bond ETF (SH511580) tracks government bonds and policy financial bonds. According to the latest disclosed periodic report, its top five holdings are all government bonds with a remaining term of about 5 years, accounting for over 66% of the fund's net asset value. The credit backing of these assets goes without saying, and the core risk exposure lies only in interest rate fluctuations. From the perspective of net value performance, this ETF has maintained positive returns for four consecutive years and continues its upward trend this year, with an annualized volatility controlled within 0.3%—indicating that it possesses "quasi-cash" attributes while also providing yield benefits that surpass those of money market funds. **However, what truly brings the China Merchants CSI Treasury and Policy Bank Bond ETF (SH511580) into the arbitrage spotlight is its T+0 trading mechanism.** It is this mechanism that gives the combination strategy of "Thursday reverse repurchase + Friday buying of the China Merchants CSI Treasury and Policy Bank Bond ETF (SH511580)" practical value. To break down the cash flow: on Thursday, a 1-day reverse repurchase of government bonds is executed, and the funds can be used on Friday, but the interest covers Friday, Saturday, and Sunday. On Friday morning, after this fund is credited, it is directly used to buy the China Merchants CSI Treasury and Policy Bank Bond ETF (SH511580). Since bond ETFs calculate interest based on natural days, the buying action on Friday effectively locks in the coupon income for Saturday and Sunday This means that from Thursday to Sunday, for four consecutive days, the funds are in an interest-bearing state without a moment of idleness. When the market opens next Monday, the China Merchants CSI Treasury and Policy Bank Bond ETF (511580) can be sold at any time, and the funds will return to the equity account, seamlessly connecting to the next round of operations. The core of this arbitrage logic lies in the **overlapping utilization of the "fund occupation cycle" and the "interest calculation cycle"**. In a volatile market, the beta returns are thin, and capturing alpha is difficult; instead, this micro-arbitrage based on rules can stably contribute marginal returns to the portfolio. The role played by the China Merchants CSI Treasury and Policy Bank Bond ETF (511580) here is essentially a "fund docking station"—providing liquidity exit on trading days while capturing coupon accumulation on non-trading days. On a deeper level, the popularity of such operations reflects the market participants' pursuit of granularity in cash management is becoming more refined. In the past, no one felt it was a pity for funds to be idle for two or three days; now, in a low-interest-rate environment, every basis point of return is worth recalculating. The existence of tools like the China Merchants CSI Treasury and Policy Bank Bond ETF (SH511580) effectively shifts the coupon opportunities from the interbank market into stock accounts in ETF form, lowering the participation threshold while also enhancing fund scheduling efficiency. Of course, it should be made clear that the net value of bond ETFs will fluctuate with interest rates, and there may be slight pullbacks with short-term holdings. However, if focusing on the specific scenario of weekend arbitrage, the holding period is extremely short, and the impact of interest rate disturbances can be basically ignored. The market's chaotic period may continue. In this state, rather than guessing the direction, it is better to push the utilization rate of funds to the extreme. After all, the difference in returns often lies in these seemingly inconspicuous details, gradually widening. 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