[Minsheng Jiayin Fu Yu: Long-Term Bond Yields Are at Historically Low Levels, Duration Crowded] Since the beginning of this year, the domestic bond market has generally strengthened, and pure bond funds have performed steadily. Especially with the recent stock market correction and further declines in interest rates, the returns of some pure bond funds have been even more outstanding. Wind data shows that as of November 9th, a number of medium- and long-term pure bond funds, such as Minsheng Jiayin Ruixia One-Year Fixed-Term Bond Fund and CITIC Prudential Wenyue Fund, have achieved returns of over 10% this year, even surpassing many equity funds. Fu Yu, the fund manager of Minsheng Jiayin Ruixia One-Year Fixed-Term Bond Fund, responded that the fund's returns come from local government bond coupons, duration fluctuations in interest rate bonds, leverage carry trades, and other yield curve opportunities. Fu Yu stated that from a valuation and crowding trading perspective, long-term bond yields are at historically low levels, and duration crowding means lower odds; once negative factors cause disturbances, volatility will be significantly amplified. Overall, the long-term trend of the bond market is strong, but the rate of increase in stages may slow down, making it more prone to range-bound trading and sideways movement, with opportunities for pullbacks, reducing the cost-effectiveness of chasing high prices.
