Sino-Singapore Jingwei client, June 11th, according to the central bank's website, in order to hedge the impact of government bond issuance and other factors to maintain the reasonable and sufficient liquidity of the banking system, on June 11th, the central bank launched an 80 billion yuan inversion through interest rate tendering. The repurchase operation, with a period of 7 days, the winning bid rate of 2.2% was the same as last time. The central bank realized a net investment of RMB 10 billion due to the reverse repurchase of RMB 70 billion due on that day.
New latitude and longitude in the data map
Most Treasury bond futures opened higher on that day, with 10-year main contracts up 0.15%, 5-year main contracts up 0.08%, and 2-year main contracts close to flat.
On the 10th, the Shanghai Interbank Offered Rate (Shibor) rose across the board. Among them, overnight Shibor rose 1.6 basis points to 1.849%; 7-day Shibor rose 3.3 basis points to 1.98%; 14-day Shibor rose 4.2 basis points to 1.8%.
According to the statistics of Bohai Securities, from June 3 to June 9, the central bank reversed the repurchase of 400 billion yuan in 7 days, the operating rate was 2.20%, and the reverse repurchase expired in 670 billion yuan in 7 days; the medium-term loan facility (MLF) recaptured 500 billion yuan Yuan; net return of 760 billion yuan; in terms of funds, shibor short-term down the long-term up. After the rebound in the convertible bond market encountered pressure, it pulled back slightly.
It is worth noting that when the MLF 500 billion MLF expired on June 8, the central bank did not directly renew it, but stated that it would renew the MLF due this month at a time, about the specific operation amount. It will be determined according to market demand and other circumstances. Guojun's solid income analysis pointed out that since the restart of reverse repurchase in late May, the price of funds has fallen, but the market mentality is difficult to switch for a time, so it is more focused on how the two MLF central banks that will expire in June will hedge.
From the middle to the middle of the year, the funding gap is large. Wind data shows that 1.41 trillion liquidity will expire in June, including 670 billion reverse repurchases and 740 billion MLF. Among them, MLF expires on June 6 and June 19, with a scale of 500 billion and 240 billion respectively.
Tianfeng's Sun Binbin team believes that the future interest rate space still depends on the behavior of the central bank. Short-term adjustments will not change the overall macro environment and the direction of monetary policy. The current complex macro environment determines the policy to form a joint force, and the central bank needs to increase macro hedging. Although there was a phenomenon of arbitrage of funds during this process, what is different from 2016 is that it is not a problem of financial institutions, but a problem of physical enterprises. The central bank will pay attention to this in the short term, and the subsequent central bank still needs to clean up the source. Looking backwards, the room for yield decline is sufficient. (Sino-Singapore Jingwei APP)