China-Singapore Jingwei Client, December 3rd, the central bank's website announced on the 3rd that in order to maintain a reasonable and sufficient liquidity in the banking system, the People's Bank of China launched a 10 billion yuan reverse repurchase operation on December 3, 2020 through interest rate bidding.
On the 3rd, 80 billion yuan of reverse repurchase expired, with a net return of 70 billion yuan on that day.
Screenshot of the central bank website
The announcement showed that the winning bid rate of the 10 billion reverse repurchase carried out on the 3rd was 2.20% and the period was 7 days.
According to Wind, a total of 430 billion yuan of reverse repurchase maturities in the central bank's open market this week will expire at 40 billion, 70 billion, 120 billion, 80 billion and 120 billion yuan from Monday to Friday.
It is worth noting that as of December 3, the central bank has carried out reverse repurchase operations for 13 consecutive working days.
According to Dongxing Securities' analysis, the central bank has a greater willingness to protect the liquidity of funds in the near future. In the second half of the year, as the demand for funds for the new year increases, the interest rate of funds may rise rapidly. It is expected that the central bank will release liquidity through open market operations. The pressure to reduce structural deposits is still not small, and the central bank also has the incentive to release a long-term stable source of funds to the banking system to ease the rise in bank debt costs and loan interest rates.
(Zhongxin Jingwei APP)