CMB Macro: The disclosure of this period's financial data has further strengthened our bullish view on the bond market.

China Merchants' macro research report pointed out that recently, the equity market has been suppressing sentiment in the bond market, with the main factor affecting interest rate trends being the shift from stocks to bonds. However, due to the different pricing foundations of the two asset classes, the phenomenon of the stock-bond seesaw is just temporary and not a regular occurrence, which will make it difficult for the shift from stocks to bonds to continue. Starting from the underlying logic, the supply and demand of money remains the fundamental factor affecting monetary prices. Looking ahead, with the weakening financing demand from the real economy sector and the continuous efforts of the central bank to maintain ample liquidity, there is a lack of a strong basis for interest rates to continue rising, making the 1.7% yield rate for ten-year bonds still an entry point. The disclosure of financial data during this period has further strengthened our bullish view on the bond market, perhaps all that is needed now is confidence and time.