Cathay Hong Kong: China bonds "bear steep" and US bonds "bull flat," Powell signals a high probability of interest rate cuts in September

CITIC Securities research report states that the domestic bond market is "bear steep," while the U.S. bond market is "bull flat." Domestic bonds: The yield curve has shifted upward overall, with the 10Y-2Y yield spread widening, showing "bear steep" characteristics. The yields on AAA-rated credit bonds have generally risen, and the long-end credit spread has marginally widened. U.S. bonds: The yield curve has shifted downward overall, with the 10Y-1Y yield spread narrowing, showing "bull flat" characteristics. Powell pointed out at the Jackson Hole Economic Symposium on August 22 that the balance of economic risks is changing, borrowing costs are dragging down the economy, the labor market is weakening, and inflation risks are controllable. This signals a high probability of interest rate cuts in September