Here is the translation of the provided text into English: The past week (September 16-20),despite only having three trading days due to holiday adjustments,saw significant fluctuations in long-term bond yields influenced by the Federal Reserve's interest rate cut on Wednesday,and the substantial maturity of both MLF and reverse repo.

The active 10-year government bond (240011) remained flat at 2.04%,while the active 30-year government bond (2400004) fell by 3 basis points to 2.15%.

Institutions believe that the "expected rate cut" is perhaps the most influential mainline logic,and even if the expectation is temporarily unfulfilled,it has hardly weakened the overall bullish sentiment in the market.

In this round of the game of monetary easing,by examining the trading structure of long-term bonds in the secondary market,it can be found that active trading plates represented by funds and securities firms are not the mainstream force for increasing holdings,while insurance institutions continue to configure beyond seasonal patterns,leading the market to form a new pattern where the configuration plate actively buys bonds and the trading plate's sentiment cools down.

Affected by the holiday reducing trading days,last week's total market spot transactions were 4,825.835 billion yuan,and repurchase transactions were 2,610.447 billion yuan,with both transactions shrinking on a month-on-month basis,significantly decreasing by 2,547.184 billion yuan and 1,604.1037 billion yuan respectively; looking at the transactions from each market,interbank spot transactions were 4,399.91 billion yuan,Shanghai Stock Exchange transactions were 32.9904 billion yuan,and Shenzhen Stock Exchange transactions were 9.6021 billion yuan; interbank repurchase transactions were 1,915.288 billion yuan,Shanghai Stock Exchange transactions were 624.2418 billion yuan,and Shenzhen Stock Exchange transactions were 70.5148 billion yuan.

After the holiday,in just three trading days,the bond market sentiment was relatively strong,with long-term and ultra-long-term bond yields touching historical lows.

The expectation of reserve policy and other credit easing increased,and the capital side converged,with the mid-to-short-term bonds that had previously increased more showing weaker performance,while the long-term bond sentiment was relatively strong.

Last Wednesday,the Shanghai Composite Index broke through the 2,700 point mark during the trading day,and the bond market performance was differentiated,with 3-5 year government bonds rising by about 2 basis points,and the active 10-year and 30-year government bonds continued to set historical lows of 2.03% and 2.1575% respectively; on Thursday,the 10-year government bond yield fell to 2.02%,and during the trading day,it was affected by the rumor of LPR reduction,and the yield turned upward,with the adjustment range of the mid-to-short-term varieties of 2-5 years being larger,rising by about 1-4 basis points; on Friday,after LPR remained unchanged,the yield returned to the downward trend,and the active 10-year government bond yield rose slightly to 2.0425%.

Looking at the whole week,the yield of the active 7-year bond fell by 0.5 basis points to 1.8950%,the yield of the active 10-year government bond fell by 0.5 basis points to 2.0350%,and the active 30-year government bond fell by 3.35 basis points to 2.1490%.

As of the close on September 20,government bond futures closed higher collectively,with the 30-year main contract up 0.61%,the 10-year main contract up 0.16%,the 5-year main contract up 0.14%,and the 2-year main contract up 0.06%.

In terms of convertible bonds,affected by the drag of the positive stock market,the China Securities Convertible Bond Index closed lower for two consecutive weeks,with transactions significantly shrinking by 82.8 billion yuan.

As of September 20,the China Securities Convertible Bond Index adjusted by 6.8%,the Shenzhen Securities Convertible Bond Index adjusted by 10.86%,and the convertible bond ETF adjusted by 6.01%.

In the primary market last week,according to statistics,a total of 96 interest rate bonds were issued in the entire market,with a scale of 481.989 billion yuan,a significant reduction of 418.596 billion yuan compared to the previous week.

Specifically,last week,the Ministry of Finance issued 3 government bonds,totaling 150 billion yuan,a decrease of 4 bonds and 350.31 billion yuan respectively from the previous week; the same as the previous week,the central bank's bills were not issued last week; local government bonds were issued 81 times last week,with a scale of 238.989 billion yuan,an increase of 16 bonds and a reduction of 41.286 billion yuan in scale compared to the previous week.

As this week is approaching the end of the third quarter,there will be a large-scale issuance,according to last week's announcement,163 local government bonds will be issued at the end of September,with a scale of approximately 613.347 billion yuan; policy financial bonds were issued 12 times last week,totaling 93 billion yuan,a decrease of 6 bonds and 27 billion yuan in scale compared to the previous week.

In terms of credit bonds,a total of 293 bonds were issued last week,with a scale of 285.848 billion yuan,a reduction of 179.194 billion yuan compared to the previous week's supply.

Specifically,financial bonds were issued 13 times,with a scale of 41.9 billion yuan; corporate bonds were issued 1 time,with a scale of 4 billion yuan; corporate bonds were issued 60 times,with a scale of 45.013 billion yuan; medium-term notes were issued 72 times,with a scale of 88.916 billion yuan; short-term financing bills were issued 72 times,with a scale of 79.87 billion yuan; directed tools were issued 18 times,with a scale of 8.423 billion yuan; asset-backed securities were issued 57 times,with a scale of 21.326 billion yuan; there were no convertible bond issues for two consecutive weeks.

In the open market last week,the central bank's single-day injection scale was around 550 billion yuan from the 18th to the 20th,with a net absorption of 510.3 billion yuan on the 18th,and a large net injection of 362.8 billion yuan and 335.7 billion yuan on the 19th and 20th,respectively,with an excess injection of 188.2 billion yuan.

However,the funding rate did not fall with the filling of the liquidity gap,with R001 and R007 rising from 1.87% and 1.94% to 2.02% and 2.05%,respectively.

Institutions believe that the central bank took good care of the money market the week before the festival,with relatively large reverse repo maturity pressure,coupled with the additional maturity of 591 billion yuan brought by the staggered continuation of MLF,the central bank's operation played a crucial role in the capital side.

This week,the scale of reverse repo maturity is 1,802.4 billion yuan,and the scale of maturity has increased,which can be followed up with the central bank's open market operations; the net financing scale of government bonds is about 841.6 billion yuan,which was 503 billion yuan last week,and the impact of government bond issuance and payment on the capital side has significantly increased.

The MLF operation will be carried out on Wednesday,and the 7-day funds can cross the month,and the capital side may face certain disturbances due to the National Day holiday next week.

In the overseas bond market,the Federal Reserve's interest rate cut of 50 basis points last Wednesday will be the largest since 2015,before which the Federal Reserve cut interest rates by 50 basis points and 100 basis points in March 2020.

Before the Federal Reserve announced the interest rate cut,most U.S.bonds fell before the market on Wednesday,except for the short-term bonds of 1 month and 3 months,and the yields of the rest of the U.S.bonds rose across the board.

And on the previous Monday,the yield of U.S.bonds was pushed to the lowest closing level in nearly two years,as the market's implied odds turned in favor of the Federal Reserve cutting interest rates by 50 basis points this week.

The yield of U.S.bonds fell mainly on Friday,with the spread between the 2-year and 10-year U.S.bond yields widening to 18 basis points,the widest in 27 months,with the 10-year U.S.bond yield rising by 10 basis points to 3.73% on Friday; the 2-year U.S.bond yield fell by 4 basis points to 3.58%,but rose by nearly 4 basis points this week; the 30-year U.S.bond yield rose by 1 basis point to 4.07% on Friday,and rose by 13 basis points this week.

The CME FedWatch Tool data shows that federal fund futures traders believe there is a 47.6% chance that the Federal Reserve will cut interest rates by 25 basis points at the next meeting on November 7.

The current interest rate range is 4.75% - 5%.

The possibility of a 50 basis point cut is 52.4%.

Oscar Munoz,the chief U.S.macro strategist of TD Securities,wrote in a team note: "Since a further cut of 50 basis points is far from certain,we believe that yields may rebound in the short term,although low-rate buyers remain relatively controllable."

"If the labor market data continues to show relative stability,the market pricing of rate cuts in 2024 may also decrease.

We will continue to buy on dips and expect the curve to continue to steepen," the TD Securities team added.

In terms of European bonds,as of the close on Friday,German bond yields rose,the largest weekly increase since June.

The 2-year German bond yield rose by 4 basis points to 2.25%,the 10-year German bond yield rose by 3.5 basis points to 2.20%,up 7 basis points this week; the 10-year Italian bond yield rose by 1.5 basis points to 3.57%,and the spread between the 10-year Italian bond yield and the same period German bond yield narrowed to 134 basis points; the 10-year French bond yield rose by 3.5 basis points to 2.97%,and the spread between the 10-year French bond yield and the same period German bond yield widened to 75 basis points.

In terms of important news,the spokesperson of the National Bureau of Statistics said on September 14 that the overall economic operation in August was stable,and high-quality development is still advancing steadily.

However,it is also necessary to see that the international environment is becoming more complex and severe,with an increase in unstable,uncertain,and unpredictable factors,and domestic demand is still insufficient,and the transformation of old and new drivers is painful,and some industries and enterprises are facing difficulties.

In the next stage,it is necessary to continue to seriously implement the decision-making and deployment of the 20th Central Committee of the Party and the Central Political Bureau,to increase the intensity of macro-control,to deepen innovation-driven development,to deeply explore the potential of domestic demand,to enhance the vitality of business entities,to stabilize market expectations,and to promote the effective improvement of the economy in quality and the reasonable growth in quantity.

The Federal Reserve implemented the first interest rate cut since the early days of the epidemic on Wednesday (18th),lowering the interest rate by half a percentage point.

This move marks a turning point for the Federal Reserve after one of the most aggressive interest rate hike cycles in history.

Federal Reserve members Waller and Bowman spoke publicly for the first time after the 50 basis point cut on Friday,reflecting a huge divergence within the Fed on the magnitude of this action.

Waller said that with inflation so weak,a substantial interest rate cut is needed,while Bowman believes that price pressures are still strong,and a smaller interest rate cut would be better.

In addition,Philadelphia Fed President Harker said that the Federal Reserve has effectively managed a challenging economy in recent years.

On September 20,the 1-year and above 5-year LPR quotes were 3.35% and 3.85%,respectively,the same as in August.Important data as of September 14th: According to data released by the National Bureau of Statistics,in August,the value added of the industrial sector above a designated size grew by 4.5% year-on-year in real terms (all growth rates are actual growth rates excluding price factors).

On a month-on-month basis,the value added of the industrial sector above a designated size increased by 0.32% in August.

From January to August,the value added of the industrial sector above a designated size grew by 5.8% year-on-year; the total national fixed asset investment (excluding rural households) was 32,938.5 billion yuan,a year-on-year increase of 3.4% (calculated at comparable prices,the same below),of which,private fixed asset investment was 16,791.1 billion yuan,a decrease of 0.2%.

On a month-on-month basis,fixed asset investment (excluding rural households) increased by 0.16% in August; the total national real estate development investment was 6,928.4 billion yuan,a year-on-year decrease of 10.2%; of which,residential investment was 5,262.7 billion yuan,a decrease of 10.5%.

According to preliminary statistics released by the central bank on September 20th,by the end of the second quarter of 2024,the total assets of China's financial institutions were 480.64 trillion yuan,a year-on-year increase of 7.0%,of which,the total assets of banking institutions were 433.10 trillion yuan,a year-on-year increase of 6.6%; the total assets of securities institutions were 13.75 trillion yuan,a year-on-year decrease of 0.1%; the total assets of insurance institutions were 33.80 trillion yuan,a year-on-year increase of 15.7%.

The liabilities of financial institutions were 438.68 trillion yuan,a year-on-year increase of 6.9%,of which,the liabilities of banking institutions were 397.66 trillion yuan,a year-on-year increase of 6.4%; the liabilities of securities institutions were 10.26 trillion yuan,a year-on-year decrease of 1.8%; the liabilities of insurance institutions were 30.75 trillion yuan,a year-on-year increase of 16.5%.

Institutional Viewpoints: Huaxi Fixed Income: Approaching the end of the month,under the challenge of funding pressure,it may be possible to continue to layout certificates of deposit and wait for the phased decline brought about by the easing of funds at the beginning of October.

Due to the significant acceleration of new special bonds in the last week of September,the weekly issuance scale of local bonds will reach 601.7 billion yuan,making the weekly net payment scale of government bonds reach 827.6 billion yuan.

The concentrated payment of government bonds coincides with the cross-quarter and National Day funding pressure,which may amplify the funding fluctuations at the end of the quarter.

If the stability of liabilities is allowed,it is possible to stage a game of "passive pricing of liquidity" for short-term varieties,and from a cost-effectiveness perspective,certificates of deposit with a yield close to 2% for a period of one year still have strong configuration value.

Guohaif Fixed Income: Recently,the bond market has declined rapidly,mainly due to three factors: 1) The fundamental performance is weaker than expected,and the economic repair process has slowed down; 2) The central bank has released a positive signal of easing,and the market is trading expectations of interest rate cuts and reserve requirement ratio reductions; 3) Risk assets are under pressure,and the stable performance of the bond market attracts funds to flow in.

In the short term,the strong market of the bond market faces certain challenges,and interest rates may be adjusted.

Zheshang Fixed Income: It is expected that the fourth quarter of the year will continue to be in a tight balance of funds.

If the central bank's "buying short" strength does not decrease,the phenomenon of the short-term government bond and fund rate inversion will still exist,and the central bank's "steepening" curve and the market's "flattening" curve will continue to compete.

In the past week,the net lending/borrowing of funds by banks and money funds/non-bank net borrowing has decreased,reflecting that the current large banks are short of liabilities,and the basic situation of non-bank funds is relatively abundant,and the demand for leverage by non-bank funds has decreased under the background of rising fund rates,and the certainty and necessity of duration strategy are higher.