[Easy Policies and High Yields Make India's Bond Market a Safe Haven for Emerging Markets] (1) Since India announced on June 5 the abolition of taxes on foreign investment in bonds and the relaxation of ownership restrictions, along with a series of measures to stabilize the rupee exchange rate, global funds have been pouring into Indian government bonds. After the reforms, overseas inflows into bonds eligible for index inclusion increased by 322.8 billion rupees (approximately US$3.4 billion), although this growth was partly due to the addition of more bonds in this category. (2) Institutions such as Pictet Asset Management and Neuberger Berman are seeking to increase their exposure, and M&G Investments has also become more optimistic after the measures were introduced. M&G's head of fixed income for Asia in Singapore said that India is more differentiated from other emerging bond markets, whose policy flexibility and credibility are more constrained. (3) Deloitte India said that tax incentives could increase returns for foreign investors by 15%-20%. The Reserve Bank of India provides subsidies for hedging costs of non-resident deposits and corporate overseas borrowing, and these measures have helped the rupee rebound by 2.5% from its historic low. Some investors say that while the medium- to long-term outlook is positive, the tense situation in the Middle East remains an obstacle, but may create buying opportunities in the coming months.

The A-share computing power leasing sector rallied in the afternoon, with Dongfang Guoxin hitting the 20% daily limit. Previously, Zhongjia Bocheng and Zhiwei Intelligent had also hit the daily limit, while Kechuang Information, Litong Electronics, Hengwei Technology, and Hongjing Technology followed suit.

【Wash Breaks Fed Communication Tradition, Interest Rate Direction Remains a Mystery】 (1) At his first meeting, the new Fed Chairman, Warsh, streamlined the policy statement, eliminated forward guidance, did not submit his personal interest rate forecast, and established five working groups to study the Fed's operating methods and economic analysis methods. He barely mentioned economic interpretation and policy transformation, and repeatedly avoided answering questions, only saying that "we will meet again in six weeks." (2) Warsh clearly promised the committee to "unambiguously and unanimously" suppress inflation, but did not specify whether to raise interest rates. There were serious disagreements within the committee, with nearly half of the members believing that interest rates should remain unchanged until the end of the year, and half believing that interest rates should be raised. Based on this, the market inferred that the probability of the Fed raising interest rates in September jumped from about 30% to more than 50%. (3) Market observers had differing opinions: some believed that reducing communication was a reform, and that building trust might reduce volatility; some analysts criticized Warsh for using his opposition to forward guidance to evade the responsibility of explaining the committee's decision-making framework. JPMorgan economists said that "understanding how the committee thinks about its work" is crucial, but the policy thinking remains unclear after the press conference. (4) Warsh's personal stance remains unclear—he was once an inflation hawk, but has also expressed support for interest rate cuts. Some believe he is using the working group to buy time to rebuild trust with the committee in order to balance his pre-election campaign promises with the committee's technocratic independence. The key focus in the coming weeks will be whether he is willing to fight inflation more aggressively than his predecessor, and how he will build internal consensus to move policy forward.