CICC has observed a volatile upward trend in bond market yields, forecasting continued fluctuations in the near future. On the short end, the decline in capital flows has moderated, with the DR001 rate hovering around 1.5%. Market attention is now centered on the People's Bank of China's liquidity injections at month-end, anticipating that cross-month risks will generally remain manageable. The central tendency for DR001 is expected to stay approximately at 1.4%. In the credit segment, investors are advised to capitalize on the narrowing of credit spreads, with a strategic focus on extending the duration of high-grade credit bonds with maturities exceeding three years.
