China-Singapore Jingwei Client, August 17 According to the announcement of the central bank, the central bank launched 700 billion yuan of medium-term loan facility (MLF) operations on the 17th, and the winning interest rate was 2.95%, the same as the previous time. The central bank stated that this MLF operation is a one-time continuation of the two MLF expirations this month, which fully meets the needs of financial institutions. At the same time, a 50 billion yuan reverse repurchase operation was carried out today.

Screenshot of central bank announcement

　　The central bank launched a 50 billion 7-day reverse repurchase operation in the open market. Today, 10 billion reverse repurchase and 400 billion MLF expire. The analysis pointed out that the follow-up central bank's monetary control will remain "flexible and appropriate", and the fluctuation of funds will be stabilized through open market operations.

　　According to Wind data, 410 billion yuan of funds expired in the central bank’s open market this week, of which 10 billion yuan of reverse repurchase expired on August 14, and 400 billion yuan of MLF expired on August 15. The 400 billion yuan of MLF funds for the period were postponed to the 17th due to holidays. The central bank conducted a total of 500 billion yuan in reverse repurchase operations this week, so it invested a net 490 billion yuan. In addition, 550 billion yuan MLF expires in August.

　　Last week, in order to hedge against the impact of government bond issuance payments and other factors, and to maintain reasonable and sufficient liquidity in the banking system, the central bank has accumulated a net investment of 490 billion yuan through reverse repurchase for five consecutive days, and interest rates have remained unchanged. At the same time, the central bank said that it will renew the two medium-term loan facilities (MLF) due this month on August 17, and the specific operation amount will be determined according to market demand and other conditions.

　　Previously, the China Securities Journal quoted analysts as saying that the large amount of funds due to superimpose the issuance of local bonds is larger, and the continued scale of MLF should not be significantly reduced. The central bank will continue to carry out reverse repurchase operations in a timely manner to maintain stable funding.

　　Political commissar Lu, chief economist of Industrial Bank, and others believe that since April this year, the central bank has shrunk the MLF for four consecutive months, and has not carried out a full-scale RRR cut. It mainly uses reverse repurchase to make up for the funding gap, and liquidity has been put on display. A certain feature of "retracting the long and widening the short". The central bank has a clear tendency to stabilize short-term funding and tighten margins in medium and long-term liquidity.

New latitude and longitude in the data map

　　"This kind of operation is mainly triggered by the fiscal revenue and expenditure situation, because from the perspective of the nature of the liabilities of financial institutions, the fiscal investment funds are roughly the same as the RRR cut and MLF. They are universal, low-cost, and longer-term. Funding." The analysis said.

　　Political commissar Lu and others predict that the central bank’s open market operations in the near future will show certain characteristics of “retracting the long-term and reducing the short-term”. The medium- and long-term liquidity investment is cautious. The main purpose of reverse repurchase is to smooth the capital side and the capital side will maintain a tight balance. Based on the short-term capital pressure, the open market operation will be carried out reasonably to maintain the stable operation of the market.

　　Some institutions pointed out that since August, the market's expectations for the tightening of monetary policy in the later period have increased, putting pressure on the bond market. In the short term, the "seesaw effect" of stocks and bonds is obvious. The stock market has fallen recently, and futures bonds still tend to fluctuate widely. (Zhongxin Jingwei APP)