Sino-Singapore Jingwei, October 20th, the central bank's website announced on the 20th that it had carried out a 100 billion yuan reverse repurchase operation by way of interest rate bidding.
The announcement mentioned that, in order to hedge against the effects of tax periods, government bond issuance payments and other factors, and to maintain a reasonable and sufficient liquidity in the banking system, the People's Bank of China launched a 100 billion yuan reverse repurchase operation on October 20, 2021 through an interest rate bidding method.
The term is 7 days and the interest rate is 2.20%.
Wind data shows that 10 billion yuan of reverse repurchase expires today, and the central bank realized a net investment of 90 billion yuan in a single day.
In terms of funding, short-term interest rates went online across the board for two consecutive days, and funding became tighter.
The Shanghai Interbank Offered Rate (Shibor) rose 9.2 basis points overnight to 2.223%.
The 7-day Shibor rose 10.9 basis points to 2.283%.
On October 15, the Central Bank held a press conference on financial statistics for the third quarter of 2021.
Sun Guofeng, Director of the Monetary Policy Department of the People's Bank of China, said that a variety of monetary policy tools will be comprehensively used to maintain reasonable and sufficient liquidity and enhance the stability of total credit growth.
Sun Guofeng said that China's financial market is currently operating smoothly, and the 10-year treasury bond yield is around 2.95%, which is generally at a relatively low level.
Cross-border capital flows are basically balanced, and the RMB exchange rate fluctuates in both directions, maintaining basic stability at a reasonable and balanced level.
For the next stage, Sun Guofeng said that a prudent monetary policy will be flexible, precise, reasonable and appropriate, with me as the mainstay, stable character as the top priority, good cross-cycle adjustments, and overall consideration of policy convergence in the next and next year.
The People's Bank of China will comprehensively use a variety of monetary policy tools to maintain reasonable and sufficient liquidity and enhance the stability of the growth of total credit.
Continue to unleash the effectiveness of LPR reforms, stabilize bank debt costs, and promote the steady decline of the overall financing costs of small and micro enterprises.
(Zhongxin Jingwei APP)Keywords: central bank, way, jingwei, interest rate bidding, reverse repo, investment, effects, repurchase operation, singapore, sino, liquidity, website, order, announcement, sun guofeng