In 2020，faced with the severe domestic and international environment，especially the influence of coronavirus，the economic operation of China kept steady and smooth. China’s becoming the only one country that has achieved positive economic growth in the world in 2020，and also one of the few countries that implementing the normal monetary policy.

In 2020，the scale of bond default reached a new high in the past five years，presenting the following characteristics：high rated large state-owned enterprises had a larger proportion of all bond defaulters；The credit risk of real estate enterprises extended gradually，and the bankruptcy rate of small and medium-sized real estate enterprises was increasing significantly；Manufacturing，construction，wholesale and retail trade and other industries with high leverage and high dependence on domestic demand had higher default rate；Under strict supervision，the default rate of urban investment bonds has declined.

From the perspective of bond interest rate’s trend，after adjusted in 2019，it was fluctuated sharply in 2020，the domestic economy came through the V-shaped rebound，driving the bond price to rise first and then fall. In the first half of 2021，the supply rhythm of the bond market slowed down，and with the Spring Festival as the watershed，the bond interest rate went up first and then decent.

Looking forward to the second half of the year，under the background of steady recovery of economic and steady monetary policy，the bond interest rate may present a congested market trend. Focus on the impact of Fed’s Tapering，leading to a tightening of global liquidity，increasing of inflation and limited domestic policy space. Firstly，the second half of the year is usually the concentration period for the outbreak of default in the whole year，and a series of epidemic stabilization policies earlier may shift the pace of bond default backward；Secondly，real estate，transportation and other industries with high default rate need to be paid more attention；Thirdly，since the high rating large-scale state-owned enterprises defaulted frequently last year，the default of state-owned enterprises reached the peak in recent years，and the subsequent default risk of high rating state-owned enterprises’ credit bonds still needs continuous attention. Finally，as an important part of green finance，green bonds are of great significance to achieving the goal of carbon peak and carbon neutralization. In the future，we need to accelerate the integration with the global market to attract more overseas investors.