RRR interest rate cuts are beneficial to bond funds. RRR interest rate cuts can supplement the liquidity of banks, which will inevitably affect the liquidity of the money market, lead to a decline in market interest rates, and help bond prices rise and improve bond yields.

Generally speaking, in the downward cycle of interest rates, the transaction price of government bonds rises, which is beneficial to funds holding bonds; In the upward cycle of interest rates, the transaction price of government bonds fell and the funds held by bonds were damaged.

The RRR cut is an omission to reduce the deposit reserve ratio, and it is one of the expansionary monetary policies of the central bank. This policy can affect the number of bank loanable funds, thus increasing the scale of credit, increasing the money supply, releasing liquidity and stimulating economic growth.