Guangfa Fund's investment advisory team: focusing on structural opportunities in the bond market.

Since 2026, the bond market has continued the trend of low yields and high volatility from 2025, and the potential for improvement in the returns of pure bond funds remains limited. In response to this, the Guangfa Fund Advisory Team believes that: first, it is important to closely monitor the switch of funds, as during the period of fiscal expansion, the increase in bond supply combined with the stock-bond seesaw effect may easily lead to imbalance in the bond market supply and demand, resulting in price declines; second, it is important to have a rational view of policy expectations. The Guangfa Fund Advisory Team states that the bond market in 2026 will present a situation where pressure and structural opportunities coexist: on one hand, traditional forces such as banks and insurance companies are weakening, the diversion effect of the stock market, and changes in demand for ultra-long bonds pose challenges; on the other hand, a significant amount of bank time deposits are maturing, and they may move to the bond market through methods such as "fixed income + funds", benefiting short-term credit bonds.