Funding conditions remain accommodative; bond market rallies then pulls back.

Funding costs continued to probe lower, and the bond market fluctuated after a series of gains. On October 15, the front-month contract for 30-year Treasury bond futures hit a new high for the year in early trading, then accelerated its decline late in the session and fell below the 118 yuan mark. Meanwhile, liquidity in the interbank market remained loose. As of the close on the 15th, DR001 fell to 1.262%, down 0.38 basis points from the previous trading day, marking another new low since May 19.