China-Singapore Jingwei Client, February 5th, the central bank's website announced on the 5th that in order to maintain stable liquidity before the Spring Festival, the People's Bank of China launched a 14-day reverse repurchase operation of 100 billion yuan on February 5, 2021 through interest rate bidding.
It is worth mentioning that yesterday (February 4) was the central bank's first 14-day reverse repurchase operation this year.
Screenshot source: Central Bank website
Wind data shows that this week the central bank’s open market has carried out a total of 480 billion reverse repurchase operations. In addition, a total of 384 billion reverse repurchases expired, so a net investment of 96 billion yuan was made this week.
In terms of funds, on the 4th, most short-end Shibor varieties rose.
Overnight varieties reported up 21.6bp at 2.075%, 7-day up 17.8bp reported 2.324%, 14-day up 5.9bp reported 2.644%, 1-month down 2bp reported 2.752%.
On the 5th, Treasury bond futures opened mixed. The 10-year main contract fell 0.02%, the 5-year main contract rose 0.02%, and the 2-year main contract fell 0.01%.
Sun Guofeng, Director of the Monetary Policy Department of the Central Bank, recently pointed out that to do a good job of monetary policy in 2021, the focus is to deeply understand the flexible, accurate, reasonable and appropriate orientation of a sound monetary policy.
To maintain the continuity, stability and sustainability of policies, it is necessary to maintain the necessary support for economic recovery and to avoid flooding.
Persist in the word "stability" and maintain strategic determination, not left or right.
Looking forward to subsequent market liquidity, Fan Ruoying, a researcher at the Bank of China Research Institute, told the media that in addition to restarting the 14-day reverse repurchase, the central bank will also increase market investment by renewing MLF and other measures to meet market liquidity needs during the Spring Festival.
On the whole, the future monetary policy will place more emphasis on accuracy while adhering to the prudent tone.
The CITIC Securities team believes that the liquidity gap facing the Spring Festival in 2021 will be around 1.85 trillion yuan, and the central bank has the need to increase investment.
However, the capital interest rate center is expected to operate near the policy interest rate in the future. The capital is still in tight balance around the Spring Festival, and it is difficult to return to the level at the end of December last year and the beginning of January this year.
(Zhongxin Jingwei APP)