When analyzing the bond market, there are three main factors: First, look at economic growth. If economic growth slows down, or even experiences a recession and decline, that would be good for the bond market. Because the central bank may cut interest rates to stimulate the economy. Secondly, you can look at the price level. If the CPI is growing, it will have a negative impact on the bond market, because the central bank may raise interest rates to curb price increases. As CPI shows a downward trend, the pressure on the central bank to raise interest rates decreases, and there may even be an interest rate cut, which will have a positive impact on the bond market. Third, the financial situation. If funds are relatively abundant, especially when more funds are allocated to conservative financial products (such as bonds), the bond market will perform better. To understand the situation of the bond market in 2008, we need to analyze it from the following three aspects: First, the U.S. economy may enter recession due to the impact of the subprime mortgage crisis. This will lead to a greater impact on China's external demand for economic growth in 2008, or even a downward trend. The central bank has limited room to continue raising interest rates in 2008. Secondly, due to the government's strong regulation and control, domestic price levels are expected to break out of the trend of high and then low in 2008, which will provide strong support to the bond market. Finally, stocks, real estate, etc. have experienced greater fluctuations and corrections, with expected returns lowering and risks increasing. Therefore, market funds have greater demand for low-risk bonds, and changes in supply and demand will also drive the bond market forward. Therefore, the performance of bond funds in 2008 is likely to be better than that in 2007, and it is recommended to increase the proportion of bond funds in the fund portfolio.