Zhaoshang Macro: The disclosure of financial data in this period further strengthens the bullish outlook on the bond market.

Jin10 data reported on August 14 that the招商宏观研报 (招商 Macro Research Report) states that recently, the equity market has created emotional pressure on the bond market, with the trend of looking at stocks while investing in bonds becoming a major factor influencing interest rate movements. However, due to the differing pricing foundations of these two asset classes, the stock-bond seesaw is merely a phenomenon, not a rule, which will make it difficult for the trend of looking at stocks while investing in bonds to sustain. From a fundamental perspective, the supply and demand for money remain the fundamental factors affecting the price of money (i.e., interest rates). Looking ahead, as the financing demand from the real sector weakens and the Central Bank continues to maintain ample liquidity, there is a lack of sustained upward momentum for interest rates, and the 1.7% yield on ten-year bonds remains a window for getting on board. The disclosure of financial data during this period has further solidified our bullish judgment on the bond market; what we may now need is perhaps just confidence and time.