Shanghai Securities: Bond market is still supported

Suggest adjusting position structure from the fundamentals, the CPI and PPI in April continued to decline Year-on-year and Quarter-on-quarter after February and March, and the April output and industrial value figures showed that the economic recovery was not plain sailing.　　Recently, the central bank's monetary policy report pointed out that to continue to maintain the liquidity of the banking system and adjust the supply and demand of market funds to ensure that the total amount of money and credit to meet the needs of economic development, guarantee the capital supply of debt market. From the level of the market, the Sino-Oil Financial Limited liability company 11th tender for the 3-year financial debt of the successful bid rate of 2.4%; The Ministry of Finance 13th tender for the issuance of bookkeeping (eight) 1-year fixed-income bonds, 0.89% of the bid rate significantly lower than expected , the Ministry of Finance 13th the merger of the market Dalian and other three government 13.1 billion yuan 3-year fixed-term local debt, the successful rate of 1.71%.　　This series of tender results show that the market demand for debt markets exuberant, the purchase enthusiasm, and further promote the two-tier market. Overall, in the near future, whether from economic fundamentals, capital, or message surface to the bond market, short-term domestic debt market will continue to slow cattle pattern. However, the medium and long term bond market still faces the risk of low yield and rising inflation expectation, and now pay attention to the operation strategy of medium and long term fixed-rate bonds. Operational strategy, pay attention to liquidity management, can be appropriate to sell some of the excessive, illiquid bonds.