The 30-year treasury futures have reached a new high for the year, and institutions expect the bond market to continue its slow bullish trend.

On August 18, the treasury futures rose rapidly at the beginning of trading, with the main contract for 30-year treasury futures hitting a new annual high, reaching a peak of 116.62 yuan during the day. Mingming, chief economist at CITIC Securities, stated that last week, both stocks and bonds rose simultaneously, and the strengthening of the bond market was mainly supported by the moderately loose monetary policy stance, as well as the large-scale implementation of reverse repos and overnight reverse repos. The future trajectory of the bond market will be determined by policy expectations, liquidity conditions, and market risk appetite, with the correlation between stocks and bonds likely to remain low. Mingming believes that the bank loan-to-deposit spread remains at a relatively high level, the demand for real economy credit is relatively weak, and the endogenous demand for bond allocation by banks is relatively stable. Special government bond infusions are also expected to enhance the capital strength of state-owned large banks, providing support for banks' asset allocation. Meanwhile, the volatility in the equity market is at a high level, and market risk appetite may have declined, which is conducive to the release of demand for bond allocation. In summary, the bond market may maintain a slow bullish trend in the future.