Caitong Securities: The Tightest Moment for Bond Market Funds May Have Passed, Focus of Money Market Funds and Short-Duration Bond Funds Shifts to Controlling Drawdowns

On March 21, Jin10 reported that the tightest moment for funds in the bond market may have passed, but fluctuations are likely inevitable. With the gradual recovery of subscriptions from both retail and institutional sides, some short bonds are now showing a “positive Interest Spread (carry).” The value of short credit, short government bonds, and certificates of deposit has become prominent. In 2025, money market funds and short bond funds should focus on controlling drawdowns, while short bond funds may differentiate themselves from competing money market funds through detailed operations such as “tracking liability pressure” and “product optimization design, and selecting preferred bond types.”