The central bank reverse repurchase for 13 consecutive trading days in November funds may turn to loose

　　China-Singapore Jingwei Client reported on November 2 that 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 50 billion 7-day reverse repurchase operation on November 2 through an interest rate bidding method.

Today's 50 billion yuan reverse repurchase expires, and there is no capital investment and no capital withdrawal that day.

So far, the central bank has carried out reverse repurchase operations for 13 consecutive trading days.

New latitude and longitude in the data map

　　In terms of funding, funding was tight on October 30, supply shortages have not yet been significantly eased, and most of the main repurchase rates have gone up.

The inter-bank pledged repurchase one-day variety rose 16.72 basis points to 2.3004%, and the seven-day one rose 9.27 basis points to 2.5889%.

　　Wind data shows that this week, the central bank’s open market has 510 billion yuan of reverse repurchase maturities, of which 50 billion yuan, 100 billion yuan, 120 billion yuan, 140 billion yuan, and 100 billion yuan will expire from Monday to Friday; There is still 400 billion MLF due.

　　After the central bank restarted the reverse repurchase operation for 7 days on October 15, the central bank has carried out reverse repurchase operations for 13 consecutive trading days, and the winning interest rate is 2.2%.

Among them, the operations on October 15, 16, 19, 22, and 26 were all 50 billion; the operations on October 20, 23, 27, 28, 29, and 30 were respectively 80 billion, 70 billion, 100 billion, 120 billion, 140 billion, 100 billion.

In addition, the central bank also launched a 500 billion yuan medium-term loan facility (MLF) operation on October 15.

　　The governor of the central bank, Yi Gang, previously published an article in the "China Finance" magazine that it is necessary to scientifically grasp the intensity of monetary policy in accordance with changes in the economic and financial situation, so as to maintain a reasonable and sufficient liquidity and promote a reasonable growth of money supply and social financing, but also firmly refrain from doing so. "Flood flooding" keeps the economy near potential output and reduces economic fluctuations.

Implement normal monetary policies for as long as possible to promote reasonable growth of household savings and income.

　　CITIC Fixed Income said that in November, the pressure on the supply of government bonds will be reduced, and more importantly, the pace of fiscal expenditure is likely to accelerate, and fiscal funds are expected to increase.

It is expected that the total amount of excess reserves between banks in early November will still maintain a tight balance.

The open market expires in November and there is little pressure, and the central bank’s OMO is expected to "cut peaks and fill valleys."

will be

, the DR001 center will operate between 1.8% and 1.9%, and the DR007 center will fluctuate around 2.2%.

The triple pressure of "low and excess reserves + fiscal pressure + structural debt gap" has declined in the early stage.

Dongxing Securities believes that at the current point in time, the pressure on funding will appear to be marginal in November

. On the one hand, the issuance of local government bonds has been completed, and the pressure on bond supply has been greatly eased. Although the issuance of government bonds is still large, the total supply of bonds is still relatively large. In the past few months, it has narrowed sharply. On the other hand, factors such as cash backflow, the need to speed up expenditures of fiscal funds, and the need to pay attention to cash acceleration have also supported inter-bank liquidity.

　　Dongxing Securities pointed out that

(Zhongxin Jingwei APP)

(The opinions in the article are for reference only and do not constitute investment advice. Investment is risky, and you need to be cautious when entering the market.)

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