Domestic bond market has strengthened YTD; pure-bond funds have delivered robust
returns. Wind data as of Nov. 9 show several medium-to-long-term pure-bond
funds, including Minsheng Jiayin Ruixia One-Year Open-Ended Bond and CITIC
Prudential WenYue, are up more than 10% YTD. Fund manager Fu Yu said the fund's
gains came from local government bond coupons, duration plays in rate bonds,
leveraged carry and curve trades. From a valuation and crowding perspective,
long-end yields are at historical lows and duration is crowded, which lowers
reward-to-risk; a negative shock would likely amplify volatility. He views the
bond market as structurally strong over the long run but expects near-term
upside to slow, with greater chance of range-bound trading and pullbacks,
reducing the attractiveness of chasing highs.
