Difficulty in bond market investment increases, multiple banks adjust strategies to build hedging portfolios.

As the end of the quarter approaches, the battle between bulls and bears in the bond market is becoming more intense. Unlike the unilateral bull market in 2024, the bond market has been in a wide-ranging fluctuation pattern this year, with the ten-year government bond yield fluctuating within a range of nearly 40 basis points. Many banks have generally felt that bond investment has become more difficult. At the same time, under revenue pressure, banks are still eager to sell bonds to realize floating profits. According to statistics, in the first half of this year, the investment income of 80% of A-share listed banks has positively supported their revenue, with an average increase of over 45%. However, whether the bond market movements in the third and fourth quarters will continue to support the banks' financial statements remains to be seen. It is understood in the industry that on one hand, after a quarter of consumption, the reserve space for floating profits in bank positions is limited, making bond portfolio management more important; on the other hand, trading positions are more susceptible to bond market fluctuations, so short-term trading strategies need to be utilized, which also tests the banks' research and investment capabilities.