Guosheng Securities released a report on October 11, stating that China's bond market continued to strengthen in the three trading days after the National Day holiday, with bond yields across all maturities generally declining. The report analyzed three marginal changes supporting the bond market's strength: first, the DR001 funding rate dropped to 1.28%, a new low since late May this year, breaking through its previous lower bound and indicating a potential further downward shift in the short-term interest rate center; second, interbank certificates of deposit (CDs) saw net repayments for two consecutive weeks, with 203.2 billion yuan repaid in the week before the holiday and 108.3 billion yuan repaid in the week after, reflecting weakening demand for bank liability financing; third, the growth rate of bond holdings by small and medium-sized banks slowed significantly, with the year-on-year growth rate falling to 4.9% as of August, suggesting potential for future replenishment. Based on these changes, Guosheng Securities believes that the bond market's strengthening trend is likely to continue, with the 10-year government bond yield expected to fall to around 1.6%, the 30-year government bond yield potentially approaching 2.0%, and interbank CD rates expected to decline to around 1.4% in the fourth quarter.