The reasons for the decline of bond funds mainly come from bond default risk and interest rate risk. The reason for the recent plunge of bond funds is mainly due to the failure of the central bank's RRR cut expected by the market, which leads to the continuous selling of bonds and the continuous decline of prices. The specific reasons for the plunge of bond funds are as follows:

1. The expected central bank RRR cut failed.

2. The bond price is at a historical high.

3. The supply side of the bond market has increased significantly.

4. The latest real estate policy is released.

firstly, the relaxation of epidemic prevention policy is benefited from the two-way benefits of real estate and epidemic prevention policy, which causes the interest rate of government bonds to rise, and thus the price of government bonds to fall, which further leads to the decline in the valuation of wealth management products and bond funds composed of interest rate bonds; Bank financing also lost money, which caused banks to sell funds to repay debts to investors, and fund companies had to start selling bonds because of bank financing redemption. Under the influence of both, bond valuation plummeted.

The reasons for the decline of bond funds mainly come from the risk of bond default and interest rate. The recent collapse of bond funds is mainly due to the failure of the central bank's RRR cut expected by the market, which leads to the continuous selling of bonds and the continuous decline of prices. The specific reasons for the plunge of bond funds are as follows:

1. The expected central bank RRR cut failed.

2. The bond price is at a historical high.

3. The supply side of the bond market has increased significantly.

4. The latest real estate policy is released.

firstly, the relaxation of epidemic prevention policy is benefited from the two-way benefits of real estate and epidemic prevention policy, which causes the interest rate of government bonds to rise, and thus the price of government bonds to fall, which further leads to the decline in the valuation of wealth management products and bond funds composed of interest rate bonds; Bank financing also lost money, which caused banks to sell funds to repay debts to investors, and fund companies had to start selling bonds because of bank financing redemption. Under the influence of both, bond valuation plummeted.