Huatai Securities: The operating range of 10-year government bond in the third quarter is still 1.70%-1.80%, with the upper limit still difficult to exceed 1.9%.

Huatai Securities pointed out that the third quarter is often a "troublesome autumn" for the bond market, and it is easy to change direction after extremely narrow fluctuations. Traditional factors are dull, trend adjustments have limited risks, while selling pressure caused by rating adjustments, regulatory changes in customized funds, institutional behavior, disruptions in risk preferences, and overseas variables need to be guarded against. Huatai judges that the operating range of 10-year government bonds in the third quarter is still between 1.70% and 1.80%, and the upper limit is still difficult to exceed 1.9%. In terms of operations, continue to be both offensive and defensive. The value of bonds with a maturity of less than 3 years is limited, and in the narrow fluctuation of long-term interest rates, the core is to look at the odds. If the 10-year government bond approaches 1.80% and the 30-10-year interest rate spread widens to more than 50 basis points, the value of playing will increase. Bonds with a maturity of 3-5 years of high ratings can still be found for interest and riding opportunities. Under credit rating adjustments, do not sink in credit, and perpetual bonds become relatively attractive. The odds for time deposits are still good, but caution is needed when it comes to weak capital differentiation resulting from regional bank takeovers.