China-Singapore Jingwei Client, March 1st. The central bank’s website announced on the 1st 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 March 1, 2021 through an interest rate bidding method, and the winning interest rate was 2.20. %constant.
On the 1st, 20 billion yuan of reverse repurchases expired, with a net return of 10 billion yuan.
Screenshot of the central bank announcement
According to statistics from the Sino-Singapore Jingwei client, this is the 38th consecutive working day for the central bank to carry out reverse repurchase operations after entering 2021.
In terms of funding, on the last trading day of February, the overall liquidity pressure in the inter-bank market was still limited, and demand was concentrated on overnight products. The overnight and seven-day repurchase interest rates were divergent. The weighted interest rate of DR001 rose by more than 41 basis points to near 2.11%. , The weighted interest rate of DR007 rose less than 1 basis point and reported around 2.21%.
According to Wind, from February 27 to March 5, there will be 80 billion yuan of reverse repurchase maturities in the central bank’s open market, of which 20 billion yuan, 10 billion yuan, 10 billion yuan, 200 billion yuan will expire from Monday to Friday. 100 million yuan, 20 billion yuan; non-repurchase and central bank bills are due.
Since 2021, the central bank has carried out reverse repurchase operations on every working day, mainly with 7-day reverse repurchase operations.
February 4 was the first 14-day reverse repurchase operation carried out by the central bank this year. On February 5th and 7th, the central bank continuously carried out 14-day reverse repurchase operations.
Zhou Maohua, an analyst at the Financial Markets Department of Everbright Bank, analyzed the media. From the perspective of the central bank's open market operation rhythm and volume after the holiday, the central bank's precise control of funds, stable words, and small amounts of multiple frequency to stabilize the funds, stabilize market expectations; at the same time; It is necessary to prevent excessive loose liquidity from leading to substantial expansion of local asset prices and leverage; however, it is also impossible to allow excessive tension in market liquidity, weaken policy transmission, and drag down the recovery of the real economy.
A previous Financial Times article stated that the current central bank’s operation volume should not be overly concerned, otherwise it may misunderstand the monetary policy orientation. The focus should be on the central bank’s open market operating interest rate, MLF interest rate and other policy interest rate indicators, as well as the market benchmark interest rate for a period of time. The operating conditions within.
Regarding liquidity, GF Securities stated that tax payment in March is a small month, and the impact of tax payment on funds is expected to be significantly smaller than in January. Inferred from this, the central bank's net investment in March may continue to maintain a low level. Pay attention to the possibility of targeted RRR cuts for inclusive finance in March. On March 13, 2020, the central bank announced a targeted RRR cut for inclusive finance. Both 2019 and 2018 will be implemented in January. There is also the possibility of routine operations in March this year. (Zhongxin Jingwei APP)