China-Singapore Jingwei client, April 30, 30th, the central bank announced that the current total liquidity of the banking system is at a reasonable and sufficient level, and April 30, 2020 will not carry out reverse repurchase operations. Up to now, the central bank has not carried out reverse repurchase operations for 22 consecutive working days.
Source: Central Bank's official website
According to the central bank's previous announcement, the central bank's last reverse repurchase operation was on March 31. On the same day, the central bank announced that in order to maintain reasonable and sufficient liquidity in the banking system, on March 31, 2020, the central bank launched a 20 billion yuan reverse repurchase operation through interest rate tendering. The time limit is 7 days and the winning bid rate is 2.20%. On the previous day, the central bank also carried out a 7-day 50 billion yuan reverse repurchase operation, winning the bid rate of 2.20%, a 20 basis point reduction from the previous one. Prior to this, the central bank has suspended reverse repurchase operations for 29 consecutive working days.
After the above two-day reverse repurchase, the central bank's reverse repurchase operation once again "turned off." As of today (30th), the central bank has not carried out reverse repurchases throughout April, with a suspension period of 22 working days. It is worth noting that during this time of the reverse repurchase suspension, the central bank once put liquidity twice.
On April 15, the Central Bank announced that from April 15, 2020, the Central Bank will lower the deposit reserve ratio by 1 percentage point for rural financial institutions and urban commercial banks operating only in provincial administrative regions. , Down by 0.5 percentage points each time. On the 15th, the first deposit reserve ratio adjustment for the implementation of the policy released about 200 billion yuan of long-term funds. At the same time, the central bank launched a medium-term lending facility (MLF) operation of 100 billion yuan. The winning bid rate was 2.95%, which was previously 3.15%, and it was lowered by 20 basis points.
On April 24, the central bank announced that, based on the needs of financial institutions, it will continue to make 266.4 billion yuan of targeted medium-term lending facilities (TMLF) due on that day. .
The China Securities Journal reported that the central bank's failure to carry out reverse repurchase operations in April has been rare since 2015. Routine MLF and Targeted Medium-Term Lending Facility (TMLF) operations also ended in shrinking hedging, and full-month open market operations will reappear net returns. Despite the directional RRR cut, it can still be found that the liquidity of the central bank is shrinking, especially the short-term liquidity is almost closed.
Shibor quotations of various varieties. Source: Official website of China Foreign Exchange Trading Center
According to data from the China Foreign Exchange Trading Center, on April 29, most of Shibor went up, overnight variety down 21.3bp reported 0.661%, 7-day up 13.5bp reported 1.755%, 14-day up 3.9bp reported 1.344%, the January period was flat Reported at 1.304%.
For the liquidity operation in May, the obvious bond research team believes that May is a big month of monetary + fiscal policy, and the currency will escort the fiscal. It is expected that the probability of a RRR cut and interest rate cut will be implemented in May. After the subsequent amount is invested, the funds Interest rates will fall further. (Sino-Singapore Jingwei app)