China-Singapore Jingwei Client, November 26. The central bank's website announced on the 26th that in order to maintain a reasonable and sufficient liquidity in the banking system, the People's Bank of China launched an 80 billion yuan reverse repurchase operation on November 26, 2020 through an interest rate bidding method.

Because 70 billion yuan of reverse repurchase expired on that day, a net investment of 10 billion yuan was realized.

As of the 26th, the central bank has carried out reverse repurchase operations for 8 consecutive trading days.

　　Wind data shows that this week (November 23-November 27), a total of 300 billion yuan of reverse repurchases expired in the open market. Among them, the non-reverse repurchase expires on Monday, and there will be 50 billion yuan from Tuesday to Friday. , 100 billion yuan, 70 billion yuan, and 80 billion yuan are due.

　　In the first four trading days of this week, the central bank successively carried out 40 billion yuan, 70 billion yuan, 120 billion yuan, and 80 billion yuan reverse repurchase operations.

This week achieved a net investment of 90 billion yuan.

　　In terms of market liquidity, funds were stable on Wednesday, and Shibor short-end varieties were mixed.

Overnight varieties reported 1.578% for 25bps down, 0.8bp for 7-days to 2.224%, 5.6bps for 14-days up to 2.84%, and 0.3bps for 1-month up to 2.716%.

　　Entering the end of the year, market liquidity demand is greater.

According to "China Securities Journal" reports, trillions of fiscal funds can be invested before the end of the year, which is expected to significantly increase the liquidity supply.

Some financial experts said that in accordance with the annual practice and the newly implemented "Budget Law Implementation Regulations" this year, a large amount of fiscal funds will be successively distributed to local governments in the next more than one month, which will ease the continuous tension of local finances and will also provide the currency market " running water".

　　The report also said that Chen Jianheng, the chief fixed income researcher of CICC, believes that short-term credit events may prompt the central bank to protect market liquidity, causing money market interest rates to fall before the end of the year.

From a historical point of view, after the previous credit events have impacted liquidity, the central bank has taken measures to partially relax liquidity in the short term.

The Financial Committee meeting held a few days ago also emphasized to maintain reasonable and sufficient liquidity.

In the past, at the end of the year, in order to avoid large fluctuations in the currency market, the central bank will generally maintain a relatively active liquidity operation.

(Zhongxin Jingwei APP)