After nearly two months, the reverse repurchase operation reappeared.
On May 26, the People ’s Bank of China announced that in order to maintain the reasonable and sufficient liquidity of the banking system, a 7-day 10-billion reversal was carried out through interest rate tendering For the purchase operation, the winning bid rate is 2.20%.
It is worth mentioning that the bond market staged a roller coaster trend: at 9:15, the central bank launched a 10 billion yuan reverse repurchase news, the market was once excited However, after the central bank’s public market announcement at 9:45 showed that the reverse repo rate did not fall, the bond market turned sharply.
Liquidity convergence in a narrow sense is an important reason for restarting reverse repurchases.
“ Considering that the scale of this investment is only 10 billion, the signal significance for alleviating the current tight funding situation is greater than the real significance. This signal has two major Positive effects: One of them , referring to the past operation rhythm, as long as the reverse repurchase is restarted, it indicates that the interest rate may be reduced at any time, which is also in line with the wording related to the RRR cut in the government work report ; Second , the interest rate supply pressure is still there, even if the standard will not be reduced in the short term, it will suppress capital fluctuations by increasing the reverse repurchase hedging efforts. The above two aspects can stabilize market confidence Role. “Guotai Junan pointed out.
“The scale of this reverse repurchase is only 10 billion, and the ability to meet the overall liquidity shortage at the end of the quarter is relatively limited, plus there are large-scale local debt this week. To issue, it will definitely have an impact on liquidity. After restarting, the central bank should continue to reverse reverse repurchase. “A state-owned large bank trader said.
The last time the central bank introduced liquidity through reverse repurchase was on March 31.
On days when the reverse repurchase in the open market did not restart, the central bank continued to move: On April 3, the central bank announced that it had lowered its excess deposit reserve for the first time in more than 12 years Interest rates, and the implementation of targeted RRR cuts in mid-April and mid-May, during which the central bank also lowered the medium-term lending facility (MLF) operating rate by 20 basis points. However, the central bank is quite cautious about the amount of liquidity invested, and the sequel to MLF and TMLF has chosen to shrink.
Guotai Junan pointed out that the restart of reverse repurchase will promote the easing anticipation of continued fermentation. Once confidence in funding is restored, Then interest rate fluctuations will tend to converge. There are two MLFs due in June, and the possibility of lowering interest rates following the trend cannot be ruled out. But the purpose is also very clear. After the LPR did not cut interest rates on May 20, the need for the central bank to guide the MLF interest rate down has increased.
The central bank governor Yi Gang pointed out in an interview on May 26 when he talked about the next phase of policy trends, a stable monetary policy will be more flexible and appropriate, and we will follow The requirements of the “Government Work Report” comprehensively use and innovate a variety of monetary policy tools to ensure reasonable and sufficient liquidity, and maintain the growth rate of broad money M2 and social financing scale significantly higher than last year.