Sino-Singapore Jingwei client announced on June 28 that the central bank announced in early morning that in order to maintain stable liquidity at the end of the half year, the 100 billion yuan reverse repurchase operation was carried out on the open market on the 28th, with a period of 7 days and a bid rate of 2.20%. stay the same. Data show that the 120 billion yuan reverse repurchase is due today, and the net return is 20 billion yuan in a single day.
Source: Central Bank website
This week (June 22-June 28), except for the three-day Dragon Boat Festival holiday, the central bank's open market conducted reverse repurchase operations in the remaining 4 working days.
On June 22, the central bank launched a 40 billion yuan 7-day period and an 80 billion yuan 14-day reverse repurchase operation, and the winning bid rates were 2.20% and 2.35%, respectively. On June 23, the central bank carried out a reverse repurchase operation of 90 billion yuan for 7 days and 110 billion yuan for 14 days, and the winning bid rates remained unchanged. On June 24, the central bank carried out a reverse repurchase operation of 180 billion yuan for 7 days, and the winning bid rate remained unchanged.
Coupled with today's 100 billion yuan 7-day reverse repurchase operation, this week, the central bank's open market has conducted a total of 600 billion yuan reverse repurchase operations. A total of 120 billion yuan of reverse repurchase expired this week, so a net investment of 480 billion yuan was achieved.
Since June 18, the central bank's reverse repurchase operations have continued uninterrupted. Huatai Securities said it expects subsequent reverse repurchase operations to continue to normalize. The advantage of open market operation is "reversible", which can be matched with the fluctuation of funds brought by the issuance of interest rate bonds for multiple periods. With the acceleration of the resumption of production, a large number of infrastructure projects are expected to be put into operation quickly. The allocation of financial funds in the next few months Will get faster and faster. In this context, flexible reverse repurchase is more suitable for short-term liquidity adjustment. Considering the large supply of government bonds and local bonds in the second half of the year, it is expected that reverse repo operations will be more frequent in the future.
Looking ahead to the subsequent monetary policy, Chuancai Securities pointed out that the central bank may tend to supplement liquidity with quantitative tools, and the central bank may continue to take reverse repurchase operations in the short term. The reason is that the special anti-epidemic government bonds have been officially launched and will complete the issuance of one trillion yuan within 40 days. This time the central bank tends to issue government bonds in a market-oriented manner, and the short-term liquidity of the currency market is tightening; therefore, the central bank has frequently carried out reverse repurchase operations recently, and its main purpose is to smooth the short-term fluctuations of the currency market. (Sino-Singapore Jingwei APP)