Domestic bond market has strengthened YTD; pure-bond funds have delivered robust returns. Wind data as of Nov. 9 show several medium-to-long-term pure-bond funds, including Minsheng Jiayin Ruixia One-Year Open-Ended Bond and CITIC Prudential WenYue, are up more than 10% YTD. Fund manager Fu Yu said the fund's gains came from local government bond coupons, duration plays in rate bonds, leveraged carry and curve trades. From a valuation and crowding perspective, long-end yields are at historical l

Domestic bond market has strengthened YTD; pure-bond funds have delivered robust returns. Wind data as of Nov. 9 show several medium-to-long-term pure-bond funds, including Minsheng Jiayin Ruixia One-Year Open-Ended Bond and CITIC Prudential WenYue, are up more than 10% YTD. Fund manager Fu Yu said the fund's gains came from local government bond coupons, duration plays in rate bonds, leveraged carry and curve trades. From a valuation and crowding perspective, long-end yields are at historical lows and duration is crowded, which lowers reward-to-risk; a negative shock would likely amplify volatility. He views the bond market as structurally strong over the long run but expects near-term upside to slow, with greater chance of range-bound trading and pullbacks, reducing the attractiveness of chasing highs.