On the whole，in the year of 2019，China’s primary bond market improved further，and the secondary market is basically stable. The social financing environment improved，the pressure on corporate liquidity eased，and Non-financial corporate bonds，especially high-grade private corporate bond issuance as well as net financing increased. The risk-free interest rate fluctuated in the range of 3.0%-3.4%，and the term spread and credit spread remained basically stable. At the same time，with the changes in the economic and financial environment，the trend of structural differentiation in the bond market continued. The financing of high-grade private corporate bonds increased，but the issuance of low-and medium-grade private corporate bonds was still difficult；the issuance of interbank certificates of deposit and net financing have slowed down sharply；the liquidity risk，credit risk，and the normalization of bond defaults has also Differentiate the term spread and credit spread.

In 2020，the economy is expected to usher in a new round of weak recovery. Market liquidity will be reasonable and abundant，and social financing costs will fall. Therefore，the yield on 10-year government bonds will rise slightly，the term spread will widen，and the credit spread will generally slow down. However，China’s debt problems will continue to ferment，and the trend of normalization of bond defaults will continue. So，it will still be difficult for low-grade bonds to issue. Also，the yield of low-grade bond is hard to decline.