The 11th Central Bank Bill Swap is here: the operation volume is 5 billion and the period is 3 months

　　Sino-Singapore Jingwei Client, November 27th, 27th, the central bank carried out the 11th Central Bank Bill Swap (CBS) operation this year, one month after the last (October 28) operation, the operation volume was 5 billion. yuan.

　　According to news from the central bank’s website on the 27th, in order to improve the market liquidity of bank perpetual bonds and support banks to issue perpetual bonds to supplement capital, the People’s Bank of China will launch the eleventh issue of central bank bills on November 27, 2020 (Friday) Exchange (CBS) operation.

　　The central bank stated that the operation volume for the current period is 5 billion yuan, with a period of 3 months, and a fixed-rate quantity bidding for primary traders of open market businesses, with a rate of 0.10%, and the first settlement date of November 27, 2020. The expiration date is February 27, 2021 (postponed in case of holidays).

　　The name of the central bank bills swapped out in this period of CBS operation is "2020 11th central bank bills (swap)", the bond code is 2001011S, the total denomination is 5 billion yuan, the term is 3 months, the coupon rate is 2.35%, and the value date It is November 27, 2020, and the expiry date is February 27, 2021 (postponed in case of holidays).

　　On January 24, 2019, the Central Bank announced its decision to create a central bank bill swap tool to improve the liquidity of bank perpetual bonds and support banks to issue perpetual bonds to supplement capital.

　　It is understood that the central bank bill swap tool can increase the high-quality collateral of financial institutions holding bank perpetual bonds, improve the market liquidity of bank perpetual bonds, and increase the market’s willingness to subscribe for bank perpetual bonds, thereby supporting banks in issuing perpetual bonds. Replenishing capital with debt creates favorable conditions for increasing financial support to the real economy. It also helps to clear the monetary policy transmission mechanism, prevent and defuse financial risks, and alleviate the financing difficulties of small and micro enterprises and private enterprises.

In addition, central bank bill swaps also benefit other bank stocks with lower Tier 1 capital adequacy ratios.

　　Pan Gongsheng, deputy governor of the central bank, once said that the central bank of China has no quantitative target for bill swaps, and bill swaps appear as a new type of financial market product with the purpose of guiding and cultivating the market.

(Zhongxin Jingwei APP)