The 10-year government bond yield has dropped to 1.8%, is holding bonds a stable way to celebrate the holiday?

On February 9, the yield of the 10-year government bond fell below the 1.8% mark, reaching a low of 1.793%, the first time since November 2025. Since January, the yield of the 10-year government bond has fallen by 10 basis points from its high, and recently with the accelerated decline in the yield of the 30-year government bond, the divergence between the two has weakened, leading to a narrowing of term spreads. According to interviewees, in the backdrop of high volatility in other assets, the bond market has seen continued recovery recently, highlighting the value of bond market allocation and strengthening institutions' willingness to hold bonds. On the other hand, with the central bank continuing to release warmth, the market is seeing an increase in expectations of loose monetary policy. As we enter the last trading week before the Spring Festival, most institutions are optimistic about the performance of the bond market before the holiday, with major disruptions possibly shifting towards fundamentals and the stock-bond seesaw effect. The inflation data and other economic indicators to be released this week will be the focus of the market.