Sino-Singapore Jingwei Client, November 5, 5th, the central bank announced that in order to maintain reasonable and sufficient liquidity in the banking system, a 30 billion 7-day reverse repurchase operation was carried out by way of interest rate bidding. The winning interest rate of 2.20% was the same as before.

According to statistics, the cumulative reverse repurchase scale of the central bank in 16 working days reached 1.220 billion yuan.

In addition, the People's Bank of China will renew the mid-term loan facility (MLF) due this month on November 16, and the specific operation amount will be determined according to market demand and other conditions.

  Wind data shows that a total of 600 billion yuan of MLF expired in November, of which 400 billion yuan of MLF expired on November 5 and 200 billion yuan of MLF expired on November 15.

Screenshot of the central bank website

  This week, the central bank continued to carry out reverse repurchase operations. Among them, a 50 billion yuan 7-day reverse repurchase operation was launched on November 2, a 120 billion yuan reverse repurchase operation was launched on the 3rd, and a 120 billion 7-day reverse repurchase operation was launched on the 4th. Repurchase operation.

Since October 15, the central bank has intensively carried out open market operations. Up to now, the central bank has carried out reverse repurchase for 16 consecutive working days.

Analysts believe that towards the end of the year, the central bank will adopt a variety of tools for flexible hedging to protect funds. It is expected that funds will show marginal easing in November, and the constraints on the bond market will be reduced.

  On November 4, most short-end Shibor varieties went down.

Overnight varieties down 41.9bp reported 1.449%, 7-day down 8.8bp reported 2.092%, 14-day down 9.9bp reported 2.115%, 1-month down 4.4bp reported 2.643%.

  Tianfeng Fixed Income said that in November the central bank will continue to cooperate through the excess open market (OMO+MLF) investment, and the overall liquidity is in a tight balance.

It is expected that DR will still be close to policy interest rate fluctuations, and the focus needs to be on the trend of CD interest rates. Under the precise guidance of the central bank, CD is not expected to rise significantly further, but it also restricts the short-term.

  Wang Qing, chief macro analyst at Oriental Jincheng, said that in the process of basically establishing the momentum of the economic marginal rebound, the central bank’s monetary policy has shifted from focusing on “emergency relief” to focusing more on the balance between stable growth and risk prevention. Funding interest rates have also started a continuous upward process.

(Zhongxin Jingwei APP)