Risk appetite is on the rise, and the bond market is adjusting passively.

On July 23, against the background of the Shanghai Composite Index breaking through 3600 points and the simultaneous rise in the commodity market, the bond market once again came under pressure, with long-term interest rates trending upward. Although the afternoon market stabilized and led to some recovery in the bond market, the overall trend of "stocks strong, bonds weak" continues. Many analysts believe that the continued rise in risk appetite, the frequent introduction of policies to combat "internal competition," and the increasing sentiment of commodity inflation are the main drivers of the recent increase in bond market yields. Looking ahead, although the funding environment remains relatively loose and yield-earning assets remain attractive, bond market strategies should still lean towards defensive until there is a clear change in the stock market.