Not only Yu 'ebao, but also the income of the whole money fund market is declining. As a representative of the money fund market, the largest balance treasure on the market can't escape this direction. From the highest 6%, to 5%, 4%, and now to 3%, the yield of Yu' ebao has been falling for three years.

As a wealth management product, what we bought on Yu 'ebao is actually a money fund.

At present, E * * has five funds cooperating with Yu 'ebao, namely Tian Hong Fund, Bosera Cash Income Currency A, Central Europe Rolling Qian Bao Currency A, Huaan Ririxin Currency A and Guotai Bao Li, all of which are monetary funds.

Money funds mainly invest in money market instruments, including government bonds, central bank bills, commercial bills, bank time deposit certificates, etc.

When the market is short of money and funds are tight, we use high interest rates to collect Yu 'ebao's money. Accordingly, as retail investors, we can get corresponding high returns. On the contrary, if the market is not so short of money, the income will naturally be lower and lower.

The central bank lowered the RRR interest rate and injected a lot of money into the market. The market is not short of money, and naturally there is no need to attract funds with high-yield products, so the market-oriented interest rate will naturally go down.

The introduction of new laws and regulations on asset management. The contents of the new regulations are roughly two points:

First, it is strictly forbidden to use the money fund share for payment, and the Internet currency T+0 can be redeemed up to 1 10,000 yuan per day;

Second, except for commercial banks that have obtained the qualification of fund sales business, other institutions or individuals are prohibited from providing advance funds for the "T+0 redemption and cash withdrawal" business in any way.

The implication is that it is forbidden to make advance payment. In the case of cutting off foreign aid, banks should set aside more money to meet the redemption requirements of T+0, so the funds used for investment are less, and correspondingly, the income is low.

In addition, the scale of Tian Hong funds is getting bigger and bigger, and it is difficult to maintain such high returns. In recent years, the emergence of more and more Internet wealth management products has also increased the competitive pressure of Yu 'ebao.