Lowering interest rates is good for the bond market. Because the interest rate of bonds is fixed, the interest income of bondholders is of course fixed. However, with the interest rate cut, the interest rate of bonds issued in the future is lower than that of bonds issued before, so the price of bonds issued before in the market is higher than that issued after. In other words, interest rate cuts lead to higher bond prices. The interest rate cut was originally the most beneficial to the stock market, because the lower operating costs of enterprises are conducive to the improvement of corporate performance. However, if the interest rate cut is due to economic recession or even crisis, then the effect on the stock market will need to be cut many times, and it will take a long time to play its role, and it is difficult for the bear market to change immediately, just like the current stock market.

However, during this period, bonds attracted more attention. Investors will actively buy bonds issued before in order to make profits in the future appreciation, so the bond market is easier to make money than the stock market. In addition, there are many interest rate cuts, and the opportunity is among them.

Under the same conditions, the bond price is inversely proportional to the market yield.

The higher the coupon rate of the bond, the more expensive the price and the higher the interest income, because the bond is a fixed income product. Under the same conditions, the higher the coupon rate of bonds, the higher the price of bonds, showing the same trend, and vice versa. On the contrary, the higher the market rate of return, the lower the bond price, and the two show opposite changes.

Generally speaking, interest rate refers to the interest on bank deposits. Bank interest rates rose, a large amount of funds flowed to savings deposits, and bond prices fell; On the other hand, the decline in bank interest rates, the outflow of a large amount of funds from savings deposits and the rise in bond prices are substantial benefits to bond funds. It is conducive to the stable development of the bond market, promoting the improvement of the net value of bond funds and stabilizing the investment income of investors. Therefore, bond funds and money market funds should become the focus of investors' attention and be reflected in the allocation of portfolio.

Although interest rate cuts have a positive effect on bond funds and money market funds, investors should also have positive financial management ideas and follow up and adjust their investment ideas in time. When looking at the income of bond funds and money market funds, we should objectively optimize the portfolio structure and formulate reasonable income expectations. You can't blindly amplify its income expectations or make concentrated investments just because the market is favorable.

Finally, pay attention to the impact of interest rate changes on existing bond funds. It can be said that the analysis of bonds mainly focuses on the duration and credit quality of bond funds. Duration refers to the weighted maturity date of bonds. From the relationship between duration and interest rate changes, if the duration of a bond fund is five years, the net value of the bond fund will increase by about 5% when the market interest rate drops 1%. This also leads to different net effects of bond funds with different holding periods, and investors can make optimization analysis.