The 10-year Treasury yield has fallen below 1.7% again, and bullish sentiment in the bond market is warming up.

Recently, bullish sentiment in the domestic bond market has continued to heat up, and long-term interest rates have seen a key breakthrough. Market data shows that the yield on 10-year government bonds fluctuated around 1.7% for several days before breaking below the 1.7% threshold again on August 12, closing at a yield of 1.694%. Meanwhile, the yield on 30-year government bonds also decreased in tandem, closing at 2.160%, which is at a low level for the year. Industry insiders believe that this round of bond market dynamics is driven by multiple factors, including expectations for loose monetary policy, a balanced and slightly loose liquidity environment, and institutional investors increasing their positions. However, after the key level was breached, the market's long-short game intensified, and the effective conditions for a trend-based decline in interest rates still need further verification.