1, the market interest rate rose. Bond prices are negatively correlated with market interest rates. When market interest rates rise, bond prices tend to fall. This is because when the market interest rate rises, the newly issued bonds will provide higher interest rates, which will make the original low-interest bonds relatively unattractive, which will lead investors to sell existing bonds and lead to a decline in bond prices. If the bonds held by bond funds are under the pressure of rising interest rates, the net value of the funds may decline.
2. The credit risk of bonds increases. Bond funds invest in different types of bonds, including government bonds and corporate bonds, which all have credit risks. When the bond issuer's credit rating is lowered or the risk of bond default is increased, investors may be worried about the bond fund, thus redeeming the bond fund share, resulting in a decline in the net value of the bond fund.
3. The bond market lacks liquidity. The liquidity of the bond market is relatively low, and some bond assets may not be realized in time. In the case that the bond fund faces a large number of redemptions from investors and the bond assets held by the fund cannot be realized normally, the fund may have to sell bonds at a low price, resulting in a sharp drop in the net value of the bond fund.
4. Impact of macroeconomic environment. Macroeconomic factors such as economic recession, inflation and policy changes may also have an impact on the net value of bond funds. For example, economic recession may lead to an increase in corporate default risk and government debt pressure, thus increasing the instability of the bond market, leading to a decline in the price of bonds held by funds, and thus affecting the net value of funds.
5. The influence of market sentiment. Market sentiment is usually influenced by investors' expectations of the market. For example, when investors are more worried about the economic prospects and the instability of the bond market, market sentiment may become more pessimistic or cautious, leading to the selling of bond funds and the decline of their net value.