Pure debt funds refer to funds that invest exclusively in bonds, with 100% invested in bonds. The risk coefficient of pure debt fund is relatively very low, which is very suitable for conservative investors and is also a very important part of the risk of asset allocation balance.

In our asset allocation, pure debt funds often play a defensive role, because pure debt funds do not need to bear too much risk and their income is basically stable.

Judging from the market situation, the average annualized income of pure debt funds is about 3% to 6%, which is higher than that of money funds. If funds can be used for investment for more than half a year, and the principal and income are relatively guaranteed, pure debt funds are a very good choice.

The trading of pure debt funds also needs certain skills, and the timing of buying and selling is closely related to the market interest rate.

Market interest rate reflects the borrowing cost of market funds, and the indicators that can reflect short-term market interest rate in time mainly include interbank lending rate and national debt repurchase rate.

There is a certain relationship between market interest rate and bond price. Generally, when the market interest rate rises, the bond price will fall, and the net value of pure debt funds is also easy to adjust back.

When the market interest rate drops, the bond price will rise, and the net value of pure debt funds will easily rise.

What can we use to measure the market interest rate? You can refer to the interest rate of ten-year government bonds. How to make good use of this indicator? You can refer to the interest rate range level of 10-year treasury bonds, and consider buying pure debt funds when the yield of 10-year treasury bonds is greater than 3%.

When the yield of ten-year treasury bonds is lower than 3%, consider selling pure debt funds.