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Last Friday, we published an article titled "Under heavy blows, the "bond bull" was still beaten to death...", detailing how the central bank has gradually changed from verbal reminders to heavy blows in the past few months to "cool down" the bond market. Unexpectedly, the central bank was not idle last weekend and issued another article to remind investors to carefully evaluate the investment risks and returns of asset management products.

The article points out that the downward trend in long-term bond interest rates and the large-scale allocation of long-term bonds by asset management products have led to a short-term increase in bond prices in the secondary market, which has led to an overheating of the bond market. Investors should comprehensively weigh the risks and returns of investment products and realize that investing in high-yield products must bear high risks. Currently, some financial products on the market use high leverage and have great interest rate risks.

Basically, it can be said that the central bank has once again made it clear to retail investors that the "bond market" is in danger and they should get out as soon as possible. This is especially true for bond-type financial products whose previous gains were significantly higher than the underlying assets - they are leveraged, and when they really fall, it's no joke.

In fact, the power of bond fund leverage has already begun to show. Take China Life An An Heng Financial Bond (012451.OF) as an example. As of the latest disclosed fund report, the sum of the top five heavily-weighted bonds of the fund has reached 118.62% of the total fund size, which is a high leverage ratio. Affected by the correction in the previous two trading days, the fund fell by 0.51%, a larger decline than other bond funds.

As the central bank continues to warn of risks, the bond market may further correct in the future. In the morning trading today, the treasury bond market fell across the board, with 30-year treasury bond futures falling by %, 10-year treasury bond futures falling by 0.5%, and interbank interest rate bond yields rising across the board, with 2, 3, 5, and 7-year treasury bond yields rising by at least 4 basis points, and 30-year yields rising by 3 basis points. In addition to today's morning trading, the bond market has now closed down for three consecutive trading days, and the "bond bull" market has come back sharply.