capcomarcadestadiumps4| The central bank continued to carry out low-volume reverse repo at the end of the month. The industry expects that funds will be stable across the month

Our reporter Liu Qi

April twenty _ ninthCapcomarcadestadiumps4The people's Bank of China carried out a seven-day reverse repurchase operation of 2 billion yuan in the form of interest rate bidding to maintain reasonable and adequate liquidity in the banking system and maintain the operating interest rate.Capcomarcadestadiumps4.8% unchanged. In view of the fact that 2 billion yuan of reverse repurchase expired on that day, the central bank achieved "zero withdrawal and zero release" in the open market.

It is worth noting that since April, the central bank's daily open market operations have been 2 billion yuan, and even near the end of the month and the May Day holiday, it has not increased the amount of open market investment.

In this regard, Wang Qing, chief macro analyst of Oriental Jincheng, said in an interview with the Securities Daily that the demand for residents to withdraw cash during the May Day holiday is limited, coupled with the fact that April is not the end of the quarter, and there is little fluctuation in market liquidity. this is the direct reason why the central bank's open market operation has maintained a low model recently. From the interbank certificate of deposit maturity yield and other indicators, the current bank liquidity as a whole is in an abundant state, so the capital surface is stable across the month.

Generally speaking, the end of the month and the end of the quarter are usually the peak of market liquidity demand, and market interest rates tend to rise. However, since mid-late April, key money market interest rates such as DR007 (weighted average seven-day repurchase rate for deposit institutions in the interbank market) have remained basically around the policy rate, and there is no significant liquidity demand pressure in the market. " Liang Si, a researcher at the Bank of China Research Institute, told Securities Daily that although the demand for market liquidity increased at the end of April, it was in a controllable range, so a low amount of open market operations was reasonable.

According to data from the national interbank lending center, the average DR007 since April has been 1.85%, close to the current short-term policy rate of 1.8%.

"in the recent context of long-term treasury bond yields and interbank certificates of deposit maturity yields and other long-end market interest rates continued to decline, a large deviation from the policy rate center (one-year MLF operating rate of 2.5%), the short-end market interest rates represented by DR007 remain basically stable. This shows the policy intention of regulators to prevent idling of funds, and at the same time helps to stabilize market expectations and curb the deviation between long-term interest rates and economic trends, thereby improving the efficiency of the use of credit funds and preventing liquidity traps. " Wang Qing further said.

Looking forward to the capital side of May, Wang Qing analyzed that May is still a "small month" of fiscal expenditure, while the issuance of new local government bonds with a slow pace is likely to be significantly increased. In addition, new credit is expected to increase in May compared with the same period last year. After the faster-than-expected GDP growth in the first quarter, monetary policy will continue to be under observation, with the focus on guiding long-end market interest rates back to the policy interest rate center to avoid capital precipitation and idling. Taken together, the average DR007 in May is expected to continue to run above short-term policy rates.