Public mutual funds begin releasing Q1 reports, bond market volatility leads to divergence in money market fund returns, and short-term assets become the mainstream allocation choice

Golden Ten Data reported on April 10 that the official website of the China Securities Regulatory Commission has started to disclose the first quarter reports of public mutual funds for 2026, with several money market funds under Debon Fund among the first to release their latest operating information. Against the backdrop of a low interest rate market, expected returns from fixed-income assets continue to decline, and money market funds, which mainly allocate to bonds, have also seen significant decreases in expected returns compared to before. Based on the first quarter’s performance, the net value growth rate of these money market funds is generally around 0.3%, with some funds performing below 0.3% for the single quarter. In addition, the surge in oil prices in March has heightened inflation expectations, sending long-term yields higher, while loose funding conditions have supported a continued decline in short-term yields, resulting in a steeper yield curve. At present, funds are further shortening maturity duration in their management strategies. According to market analysis, shortening the maturity period reduces the risk of net value declines caused by interest rate volatility, enhances asset liquidity, helps maintain stability and hedging, and strengthens the portfolio's risk resistance.