China-Singapore Jingwei client, May 29, according to the official website of the central bank, on the 29th, the central bank issued an announcement saying that on May 29, 2020, the People's Bank of China launched a 300 billion yuan reverse repurchase operation through interest rate tendering.
Source: Central Bank's official website
The central bank explained that the 300 billion yuan reverse repurchase operation was carried out to hedge the impact of government bond issuance, corporate income tax settlement and other factors, and to maintain the reasonable and sufficient liquidity of the banking system. The interest rate for this bid is still the same as last time. 2.20%, the period is 7 days.
It is worth noting that the central bank has carried out reverse repurchase operations for four consecutive days from May 26 to May 29. The amount of reverse repurchase has also gradually increased, being 10 billion yuan, 120 billion yuan, 240 billion yuan, 300 billion yuan.
Wind data shows that there are no positive repurchase and reverse repurchase in the central bank's open market this week, and a total of 670 billion yuan of reverse repurchase operations have been carried out this week. Therefore, this week the central bank's open market net investment of 670 billion yuan.
In an interview with the media, Founder Securities chief economist Color stated that in order to cooperate with fiscal policy, the use of RRR cuts for banks to release liquidity will be the central bank ’s main idea, and every weekend starting in June or even May will be a window for RRR cuts. . The current fiscal policy will play a more dominant role, and monetary policy will mainly cooperate with the fiscal power to be moderately loose, rather than flooding.
According to the First Financial Report, Wen Bin, chief researcher of China Minsheng Bank, believes that the liquidity in June will be impacted by three aspects: one is that it coincides with half a year and there is seasonal pressure; the other is that there are two issues with a total of 740 billion MLF due The third is that the government work report has clarified this year ’s fiscal deficit and the scale of local government special bonds. Government bonds are expected to accelerate the issuance and accelerate the recovery of domestic demand as soon as possible. It is expected that in June the central bank will adopt a variety of monetary policy tool combinations such as "full-scale reduction + MLF placement + reverse repurchase", supplemented by the combination of "7-day reverse repo + 28-day reverse repo" to maintain the market Liquidity is adequate and reasonable and market interest rates are stable. (Sino-Singapore Jingwei APP)