Sino-Singapore Jingwei Client, December 22, according to the official website of the central bank, in order to maintain stable liquidity at the end of the year, on December 22, 2020, the People's Bank of China launched a reverse repurchase operation of 130 billion yuan by way of interest rate bidding.

　　Source: Central Bank's official website

　　The announcement shows that the central bank's open market 7-day reverse repurchase has won bids of 10 billion yuan, with a winning interest rate of 2.20%; the open market 14-day reverse repurchase operation has won bids of 120 billion yuan, with a winning interest rate of 2.35%.

Both the 7-day and 14-day winning bid rates remain the same as last time.

　　On December 22, 10 billion yuan of reverse repurchase expired, and a net investment of 120 billion yuan was realized that day.

　　Wind data shows that this week (December 21-27), the central bank’s open market has 60 billion yuan of reverse repurchase maturities, of which 20 billion yuan, 10 billion yuan, 10 billion yuan, and 10 billion are due respectively from Monday to Friday. RMB 10 billion.

　　Hualin Securities believes that the 14-day reverse repurchase operation shows the willingness of monetary policy to continue to protect the market and also drives the market’s long sentiment.

In addition, near the end of the year, market sentiment swings sharply, market consensus is expected to be strong, institutional operations are more obvious to follow suit, and yields are prone to one-sided phenomenon.

　　In addition, on December 21, December LPR quotations were announced: 1-year varieties were reported at 3.85%, and 5-year-old varieties were reported at 4.65%. The December LPR quotations for different periods were the same as the previous month’s quotations.

According to the analysis of China Securities, the LPR quotation has not changed for 9 consecutive months, and the possibility of LPR downward adjustment is still small.

It is expected that the tight, stable and neutral tone of the monetary policy in the later period will remain unchanged. The direction of monetary policy will not change sharply, and quantitative control will still be the main focus.

(Zhongxin Jingwei APP)