10-year Treasury yield falls to 1.704%, bond market trading logic returns to fundamentals
The Chinese bond market has seen a surge in bullish sentiment, with 10-year and 30-year treasury yields hitting new lows for the year. This rally is attributed not only to loose liquidity but also to shifts in fundamental expectations, weak credit demand, and increased institutional allocation. Concurrently, a growing number of wealth management products are being terminated early, with around 650 products already halted this year, a significant increase from the previous year, reflecting a trend towards early termination in a low-interest, net-asset-value-based environment. AI