Rational view of the bond market surge, do not ignore the risks behind it

On December 11th, bond yields have fallen sharply recently. When investors enjoy the dividends brought by the bond market surge, they must also maintain a sense of rationality and not ignore the risks behind it. The market has fully expected the bond market. If there is a gap between the implementation of future policies and expectations, the market may have the possibility of a major correction. Most Financial Institution Groups are bulls in the bond market. In the case of unilateral interest rates and no hedging tools, they need to be vigilant against the risk of stampeding on the market once there is a significant disturbance. At present, the yield of 10-year government bonds has fallen to 1.84%. Market participants should recognize that the future downside space is limited, but the upside space is very large.