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Since the beginning of this year, the bond market has attracted widespread attention. The central bank has repeatedly reminded the market of the risks regarding long-term bond yields, and investors have also become more rational.

my country's bond market continues to develop healthily and is an important financing channel for the real economy.In recent years, my country's bond market reform and opening up have achieved remarkable results, and the level of marketization has been continuously improved. The scale of the bond market continues to expand. As of the end of June 2024, the balance of the bond market reached 16.5 trillion yuan, a year-on-year increase of 9.8%, ranking second in the world. The trading activity of the bond market has increased significantly. In the first half of 2024, the scale of spot transactions reached 21.9 trillion yuan, a year-on-year increase of 34%, and the turnover rate was 1.3 times, an increase of 21% over the same period last year. The bond market continues to strengthen its support for the real economy. In the first half of 2024, the net financing of government bonds and corporate credit bonds was 4.8 trillion yuan, accounting for 26% of the increase in social financing scale, an increase of 4 percentage points year-on-year; the balance of corporate credit bonds reached 32.5 trillion yuan, which is the second largest financing channel after credit.

The central bank continues to pay attention to and warn of bond market risks from a macro-prudential perspective.There have been some risk events in the history of my country's bond market. The "Class C Account" incident in 2013 exposed the obvious lack of internal risk control of institutions. The redemption wave of bank wealth management products in 2022 reflects investors' insufficient understanding of the investment risks in the bond market. Since 2023, long-term bond yields have fallen by 60 basis points, showing a unilateral market trend, attracting a large amount of capital inflows, and some leveraged transactions have also occurred. Market analysts believe that the unilateral decline in long-term bond yields will accumulate greater financial risks. Once the market turns, the rapid liquidation of leveraged positions will exacerbate the downward spiral of the market, and may also spread to other financial markets, generating systemic risks. United StatesSilicon Valley BankRisk events also provide us with insights. The central bank should, from a macro-prudential perspective, continue to pay attention to market operations, promptly alert to risks and block unilateral market conditions from amplifying risks in order to prevent systemic risks and maintain financial market stability. At the same time, it should strengthen investor education and remind investors that the bond market has ups and downs and that investment involves risks.

Investors should carefully assess the risks and returns of the bond market.Bond investment should adopt a rational and stable investment strategy to avoid excessive short-term investment behavior, high-price speculation, and blindly following the trend. Some market participants and industry experts pointed out that there is interest rate risk in the bond market. Investing in the bond market does not mean that stable expected returns can be achieved. When making independent investment decisions, buyers should be aware of their own risks. Institutional investors in particular should strengthen internal control management, manage the risks of product portfolios, and always be vigilant about maturity and asset-liability mismatch risks.

Resolutely crack down on illegal activities that disrupt market order in the bond market.The corporate governance and internal control systems of current market institutions still need to be continuously improved, and there are still some irregularities. Recently, some institutions in the bond market have lent bond trading accounts and their quotations have deviated significantly from the market level. Financial management departments crack down on illegal activities that disrupt market order, which is conducive to regulating market operations, maintaining a good market order, and promoting the long-term stable development of the financial market. The regulation and development of the bond market are mutually reinforcing and not contradictory, and better sustainable and stable development can be achieved in the regulation.