Sino-Singapore Jingwei Client, August 20. According to the news from the central bank’s website on the 20th, the central bank announced that in order to maintain a reasonable and sufficient liquidity in the banking system, the People’s Bank of China launched a 160 billion yuan reverse repurchase operation on August 20 through an interest rate tender. The winning bid rate is 2.20%.
Screenshot source: central bank website
Wind data shows that this week (August 15-August 21), the central bank's open market will have 950 billion yuan of funds due, of which the 400 billion MLF expiration on August 15 will be postponed to August 17 due to the weekend. In addition, the scale of reverse repurchase due on August 17, 18, 19, 20, and 21 is 10 billion yuan, 50 billion yuan, 140 billion yuan, 150 billion yuan, and 150 billion yuan, respectively. On August 20, another 50 billion yuan of treasury cash deposits expired.
On August 19, Shibor moved up slightly, among which overnight varieties rose 3BP to 2.15%, 7-day varieties rose 1BP to 2.20%, and 14-day varieties rose 2BP to 2.25%.
It is worth mentioning that since the restart of reverse repurchase on August 7, the central bank has been conducting reverse repurchase operations for 10 trading days, and the cumulative amount of operations reached 970 billion yuan.
Zhou Maohua, an analyst at the Financial Markets Department of Everbright Bank, believes that the central bank's recent continuous operation of reverse repurchase mainly has two considerations. One is to stabilize the fluctuation of funds. Recently, due to traditional factors such as tax payment and the increase in the issuance of treasury bonds, the central bank has stabilized the capital through open market operations. The second is to stabilize market expectations. In terms of total amount, domestic liquidity is generally moderate. Due to the continuous improvement of the macro economy, the market's expectations for the central bank's policy adjustments are heating up. The central bank has recently achieved a small amount of net investment, releasing a signal to continue to maintain reasonable and adequate liquidity.
It is worth noting that the executive meeting of the State Council recently requested that financial support policies be continued. Maintain reasonable and sufficient liquidity but avoid flood irrigation, effectively play the role of precise drip irrigation as a structural direct monetary policy tool, and ensure that new financing flows to the real economy, especially small and micro enterprises. Deepen the reform of market quoted interest rates and guide loan interest rates to continue to decline.
According to the China Securities Journal, analysts believe that as policy operations return to normalization, liquidity management pays more attention to appropriateness, which not only guarantees reasonable liquidity demand, but also avoids oversupply and siltation, and emphasizes precise drip irrigation and direct access to entities. It is expected that the currency release during the year will be mainly carried out through open market reverse repurchase and MLF operations, and the probability of a comprehensive RRR cut will decrease significantly . (Zhongxin Jingwei APP)