From "watching stocks and doing bonds" to pricing regression: the logic of bond market investment switches.

In the near term, the bond market is significantly under pressure. In response to this, Huaxi Securities' chief economist Liu Yu stated: On one hand, the sharp increase in bond yields has led to capital losses; on the other hand, traditional bond market investment logic has failed. In theory, the three key elements of current bond market pricing - funding, fundamentals, and policies - all support a downward trend in interest rates. However, the market has entered a pricing state determined by a single variable of risk appetite, leading to an extreme situation of "selling stocks to buy bonds". Looking ahead, institutions believe that the most pessimistic stage may have passed, and the bond market is expected to return to its own pricing logic. After a significant adjustment in the bond market, both trading opportunities and allocation opportunities have emerged.