As of the end of June this year, the yield of the monetary fund has dropped below 2%.

Jinshi data news on August 1st, the Central Bank cut interest rates, driving down long-term interest rates. On July 29th, the 10-year government bond interest rate had dropped to 2.16%, and the 1-year AAA deposit interest rate had fallen to 1.9%. This can also explain why there was a large amount of redemptions for the money market funds in June. As of the end of June this year, 42% of the 31 trillion public sale funds were money market funds. However, due to the decline in long-term interest rates, the yield of money market funds (mainly invested in interbank certificates of deposit and short-term bonds) has fallen below 2%. Therefore, the share of money market funds has decreased from 13.67 trillion to 13.19 trillion, with a net redemption of 482.2 billion. The interest rate of interbank certificates of deposit has a spread of approximately 10-20 basis points compared to the 10-year government bond interest rate, and the largest buyer in the bond market is banks. When the government bond yield approaches the liability cost of banks, banks may reduce their bond purchases, meaning that the lower limit of the interest rate may have reached a cyclical bottom.