Recently, the central bank cut interest rates continuously, and the bond market yield dropped, which led to an increase in bond prices. Therefore, once the purchase and redemption trigger the money fund to sell bonds and cash out, the yield of the money fund will go up.

Generally speaking, because there is a corresponding relationship between the overall yield of the money fund and the one-year benchmark interest rate, after entering the interest rate reduction cycle, with the continuous downward trend of interest rates, the yield of the money fund is also in the downward channel, and the current high yield is unsustainable.

Caution is recommended!