Why is Yu e Bao s income getting lower and lower?

Hello, because the essence of Yu'e Bao is that it belongs to the currency, and behind the currency is the interbank lending market, which is an agreement deposit, that is, the currency is mostly lent to the bank, and the bank pays a certain interest.

Therefore, the income of Yu'e Bao is closely related to the interbank lending market and the tightness of market funds. The market is tight on funds, and major banks are in urgent need of capital turnover, so the interbank lending rate continues to rise; When the market funds are loose, the call rate will naturally fall.

When banks face quarterly, semi-annual, and annual assessments, and when the market demand for funds is large, they will encounter a shortage of funds, and the income of wealth management products such as Yu'e Bao may also rise again. ** Whether it is the manipulator behind Internet financial management, they use the high returns of this special stage to promote and market, which misleads investors to think that the income level at this stage is the normal income level of this financial product. Therefore, when the market funds are loose, the income of currency ** declines, and the income of Internet wealth management products such as Yu'e Bao also declines, investors cannot accept it.

In fact, the normal monetary income level is generally around 3-4%, so if the market capital situation improves, Yu Bao and other income may reach this level.

Yue Bao. The income, within seven days, can reach a rate of return of 5%, and it soon spread, and many people took their balance treasure and stuffed it into their own balance treasure. Roughly calculated, there are 10,000 yuan on Yue Bao, which can earn yuan a day, which is more than ordinary bank wealth management, but from the current rate of return, you can earn yuan a day.

I don't like Yu'e Bao as a wealth management product.

The main thing is that I will only stuff a few fractions into it, the amount is very small, and the interest rate will not fluctuate too much. Now there are *** payments everywhere, and some excess cash on Alipay and WeChat is easier to take, and you can earn some interest.

But now, most people in the non-financial sector will choose to use Yue Bao and Coin Pass.

Because they have more cash, they are very sensitive to fluctuations in interest rates. Because the majority of netizens are very concerned about the issue of Yu Bao, let me explain to you why it continues to decline.

First, Yu'e Bao is a basic financial product.

The most common financial instrument for people.

It is nothing more than Yu'e Bao and Coin Pass, no matter what financial platform it is, it is basically doing monetary funds.

Target. You can open Yue Bao, click on the fund details, and you can know the currency and funds they hold**. Therefore, our Yue Bao account will be deposited in the bank, and then the bank will invest and earn profits, and then distribute it.

I take a look at the monetary returns of the last decade and see that 2014 and 2018 saw the biggest gains, both times in China's financial markets.

Stressful times. Therefore, when the market is in dire need of financing, higher interest rates will be offered, so that everyone will have a hot stream to flock to it, which will make depositors happy and banks can make money, killing two birds with one stone.

Second, there is no one in the market who needs to spend money at all. It is estimated that many people have seen the words "no shortage of money" during this period of time, and their hearts are jumping, what is this concept? He always felt poor.

I'm not bad when I say it, it's that we have enough financial support, not what we want, because we don't have enough money in our hands. According to statistics, in the first quarter of this year, the People's Bank of China.

Savings and household savings increased by trillion yuan and trillion yuan respectively.

In recent times, because of various things, everyone has felt a huge pressure, and everyone knows that with savings, there is more money. In the past few weeks, the central government has lowered interest rates twice in a row so that everyone can borrow and spend money, so that the economy can develop better.

The biggest headache is the banks and the companies, although they are putting some money into them, but no one wants to lend their money because they don't know what they can do and pay interest on their deposits. So, the ROI.

The decline is also to be expected.

1. Increase the cash ratio. In order to prevent the occurrence of risks, Yu'e Bao increased the proportion of cash, which led to a decrease in the amount of money used for investment and an increase in bank deposits. As a result, this situation leads to a decline in earnings.

2. Yue Bao upgraded. Yu'e Bao began to access Tianhong currency**, and later gradually accessed CEIBS, Bosera, Huaan, Cathay and other ***.

After the access, it has caused a certain diversion effect on the funds of Yu'e Bao itself. Therefore, for a period of time, the newly accessed ** will not generate income soon, thus lowering the overall income of Yue Bao.

3. The entire currency market is in a recession. Since 2018, not only the income of Yu'e Bao has declined, but also the income of other currencies**. And Yu'e Bao is essentially a category of currency.

Therefore, due to the influence of the market, Yu'e Bao's income has declined.

Affected by the downward trend of the global financial environment, the return of currency** continued to decline; The income of Yu Bao is closely related to the interbank lending market and the degree of tightness of market funds. The market is tight, and the major banks are in urgent need of capital turnover, so the interbank lending rate continues to rise, and the market funds are loose, and the call rate naturally falls.

First, the following chart is the trend of Yu'e Bao's income in the past year, we see that Yu'e Bao's income has indeed been decreasing, from the highest 7% 7-day annualized rate of return at the beginning of the year to about now.

Second, the reasons for the decline in the income of Yu'e Bao are not related to the following aspects. First of all, Yu Bao is essentially a currency, at present, the bank funds are loose, resulting in a decline in the interest rate of the currency, Yu Bao is in this wide environment of the wheel, and the income will definitely be greatly affected.

Third, in addition, the decline in the income of Yu Bao has a lot to do with its large scale, the ship is small and easy to turn around, and the scale is too large to inevitably cause management difficulties, and at the same time, there will inevitably be more funds that cannot be used well and cannot be earned.

Fourth, furthermore, there are more and more alternative products, and the competition between currencies and various types of babies is becoming increasingly fierce, and everyone will choose more attractive products according to the rate of return.

1. The central bank cut the reserve requirement. Banks are no longer short of money, the interest rate given has fallen, and the income of currencies such as Yu Yu Bao has also declined.

2. The number of buyers is large. The capital risk is high, and some projects with high profits cannot be invested, and can only invest in some relatively stable projects with less high returns, resulting in a decline in returns.

3. If you feel that the income is very low. If you don't want to continue to buy Yue Bao, then you can also consider other products such as bank structured deposits and fixed wealth management, but if you don't want to replace it, you can continue to put Yue Bao, although the income has declined, but it is still much higher than the current interest rate in the bank card.

The main reason is because most people are now using Yue Bao to manage their finances. As the number of users increases, the amount of money per person will also increase, and the demand for funds will not be so great. Therefore, the profit and above are also slightly lowered, which is the main reason why the income of Yu'e Bao is getting lower and lower.

The second reason is that affected by the downward trend of the global financial environment, the income of currency ** continues to decline, which is the same for everyone, and the yield of the same currency ** that everyone sees on Yu'e Bao is the same.

Moreover, the interest of Yu'e Bao is usually the so-called income, and the interest of Yu'e Bao is issued every day, and the interest of the same amount is different every day, for example, on April 21, 2019, the 7-day annualized rate of return of Yu'e Bao is.