Sino-Singapore Jingwei Client, June 19, according to the news of the central bank website on the 19th, the central bank announced that in order to maintain stable liquidity at the end of the half year, the People's Bank of China carried out a 180 billion yuan reverse repurchase operation through interest rate tendering on June 19, 2020 . Among them, 70 billion yuan is a 7-day period, and 110 billion yuan is a 14-day period; the winning bid rates are 2.20% and 2.35%, which are the same as before. Today, 100 billion yuan of reverse repurchase expires, and 240 billion yuan of MLF expires.
Screenshot source: Central Bank website
Earlier, the central bank launched a 120 billion yuan reverse repurchase operation on the 18th. Among them, the 50 billion yuan reverse repurchase has a 7-day period, and the 70 billion yuan reverse repurchase has a 14-day period. It is worth noting that this is the first time that the central bank has carried out a 14-day reverse repurchase since February. In addition, the 14-day reverse repurchase bid rate was 2.35%, a 20 basis point drop from the previous one.
According to Wind statistics, this week (June 15 to 19) the central bank carried out a total of 300 billion yuan of reverse repurchase and 200 billion yuan of medium-term loan facility (MLF) operations, because this week there are 420 billion yuan of reverse repurchase and 240 billion yuan The medium-term borrowing facility (MLF) is due. From a full perspective, the central bank achieved a net return of 160 billion yuan this week.
On June 18, Shibor went up across the board. Overnight varieties rose 7.5bp to 2.1230%, 7 days up 4.3bp to 2.10%, 14 days up 26.4bp to 2.0960%, and 1 month up 3bp to 2.0230%.
According to the China Securities Journal, analysts pointed out that the large-scale reverse repurchase operation has recently made a comeback. There are three main reasons: First, maintaining stable liquidity at the end of the six months. At the end of June, it is the time of inter-month, inter-season, and inter-semi-annual. This year, more “inter-node” factors are added, and liquidity may be tightened. Second, the recent issuance of 100 billion yuan of special national debt may cause disturbances to the capital; Third, the interest rate of funds has risen sharply recently, and it is necessary to "cool down" rising interest rates. As of the 17th, DR001 and DR007 had risen above 2% and appeared upside down.
It is worth mentioning that the executive meeting of the State Council recently proposed that the comprehensive use of tools such as RRR cuts and re-loans should keep the market liquidity reasonably ample. This has heated up the market's expectation of a further downgrade.
Wen Bin, chief researcher of China Minsheng Bank, expects that the central bank will continue to increase open market operations, maintain short-term market liquidity stability, and support the issuance of special government bonds. From the next stage, there is still more than 4 trillion yuan to be issued for national debts, local government special debts, corporate credit debts, etc. Therefore, there is still room and necessity for a comprehensive reduction of the standard, more flexible and appropriate operation through monetary policy, and cooperation with active fiscal policies, Reduce the cost of government and corporate bond issuance, stabilize and expand domestic demand, and support the macro economy to continue to stabilize and recover. (Sino-Singapore Jingwei APP)