After the annual report disclosure, public funds have entered into the rhythm of releasing the quarterly report. Currently, nearly 50 bond funds have already released their quarterly reports. Based on the investment strategies revealed in some quarterly reports, pure bond funds in the first quarter focused on short-term interest rates and credit bonds, and are optimistic about the recovery of long-term interest rates. Hybrid bond funds were impacted in the first quarter but quickly recovered after entering April. Among the hybrid bond funds that have already disclosed their quarterly reports, some products had negative returns in the first quarter, but the latest annual returns have risen to 7%. Several hybrid bond funds in the quarterly reports indicated that the uncertainty brought about by the US-Iran conflict is gradually fading, and the opportunities in the equity market in the second quarter outweigh the risks. In the first quarter, pure bond funds focused on short-term and credit bonds. According to Choice data, currently, 28 pure bond funds (combined shares) have disclosed their quarterly reports. In the already disclosed quarterly reports of pure bond funds, Jinxin Minxing Bond Fund performed well this year, with A, C, and E net asset values growing by nearly 1.8%. The fund manager team stated in the quarterly report that macroeconomic data in the first quarter disturbed long-term bonds, but domestic monetary policy remains prudent and slightly loose, interbank funds remain abundant, and the fluctuation in fund prices is lower than in previous years. In terms of bond performance, short and medium-term interest rates outperformed long-term interest rates, while credit bonds overall outperformed interest rate bonds. There is a stronger demand for credit bonds within 3 years, and bond coupon income has a certain advantage. Therefore, the fund mainly invests in credit bonds, selects medium-term credit bonds, and earns coupon income and credit bond capital gains. The quarterly report shows that Jinxin Minxing Bond Fund allocated 37.27% to medium-term notes and 18.26% to corporate bonds, while primarily holding policy finance bonds and non-bank financial bonds. In addition, several bond funds under Zheshang Fund early disclosed their first-quarter reports this year, and all mentioned the market characteristics of short-term strength over long-term and credit bonds over interest rate bonds in the first quarter, as well as the possible impact of inflation on the bond market. The fund manager team of Zheshang Juying Pure Bond believes that as high-interest deposits continue to mature this year, banks' liability costs continue to decline, and the allocation force is expected to become a stabilizer in the market. The recent sharp rise in oil prices has raised concerns about inflation, and long-term interest rates remain high, but pork prices are also rapidly falling, offsetting some of the pressure brought by oil prices, making inflation risks manageable. Coupled with loose liquidity, long-term interest rates are expected to show signs of recovery. After entering April, long-term interest rates did indeed fall, especially the 30-year Treasury bond yield, which dropped more than 10 basis points from its peak. Dong Liuyang, the manager of Huaying Stable Income Fund, stated in the quarterly report that short-term input inflation has an adverse impact on the bond market, and in the medium term, China's economic growth target is between 4.5-5%, with high certainty of price index rebound. On the other hand, with moderate loose monetary policy, the relative price advantage of the bond market has increased, and the long-term term interest spread is at a historical high. It is expected that long-term interest rates will exhibit a range-bound pattern, and with stable funding conditions, short-term arbitrage operations can continue. Mixed bond funds have shown a fading impact of the US-Iran conflict on the equity market. In terms of mixed bond funds, 19 funds (combined shares) have already published their first-quarter reports. Influenced by the turbulence of global assets caused by the US-Iran conflict, hybrid bond funds containing equities performed moderately in the first quarter, with this year's central return briefly reaching zero. However, after entering April, the equity market rebounded from the bottom, and hybrid bond funds began to recover. Among the already disclosed quarterly reports of hybrid bond funds, Rongtong Zengyuan Bond Fund A and C shares had negative returns in the first quarter but have now turned positive, with returns exceeding 7% this year. The fund manager team stated in the quarterly report that it is impossible to avoid the impact of the Middle East war on the stock market, but profit forecasts should not be based on such highly uncertain factors. The key focus is still on the investment opportunities brought by structural industrial trends in the market. At the industry level, the fund strives for a balanced allocation and will overweight directions with stronger industrial trends. Currently, it has a positive outlook on opportunities in artificial intelligence computing power and power sectors. The first-quarter report shows that Rongtong Zengyuan Bond Fund has an equity allocation of 18.04%, with a focus on hot stocks in the communication and electronic industries, and the bond allocation is mainly in policy financial bonds. From the perspectives of mixed bond funds already disclosed in the first quarter, fund managers have a rational and optimistic outlook on the follow-up impact of the US-Iran conflict. The fund manager team of Pengyang Tianli Enhanced believes that although Chinese assets are short-term affected by geopolitical conflicts, they have a strong ability to resist shocks and serve as a safe haven for global funds, relying on a high energy self-sufficiency rate, a complete industrial manufacturing system, and being far from the conflict center. At the end of the first quarter, the equity allocation of Zhongou Dingli Bond Fund was 16.73%, and the fund manager team stated that after the adjustments in March, the risk of equity assets was somewhat released, and as time passes, the situation in the Middle East will probably become clearer, reducing uncertainty. At the same time, China is still in a stage of abundant liquidity, which is favorable for equity assets in the macro scene. Therefore, it is expected that opportunities in the equity market will outweigh risks in the second quarter. In terms of convertible bonds, some mixed bond funds mentioned the market's overvalued state. The fund manager team of Zhongou Dingli Bond Fund stated that based on the high valuation and high price of convertible bonds, investment operations are more focused on timing control, reducing the allocation ratio of convertible bonds in high areas in the first quarter. The first quarter report of Pengyang Tianli Enhanced also mentioned that in the context of high valuation of convertible bonds, they gradually reduced the allocation and holding flexibility of convertible bonds, completing the transition from high allocation to low allocation. This article is a reprint from Cailian Press, GMTEight Editor: Chen Wenfang.