[Source: China Banking and Insurance News]
China Banking and Insurance News and Dianshi Fintech jointly launched the "Daily Fixed Income Report" to provide you with the freshest financial market data such as money market, primary market and secondary market.
Market Overview
In terms of the open market, on December 21, 2023, the People's Bank of China announced that in order to maintain reasonable and sufficient liquidity at the end of the year, a 7-day reverse repurchase operation of 195 billion yuan and a 14-day reverse repurchase operation of 226 billion yuan were carried out by way of interest rate bidding on the same day, and the winning interest rates were 1.80% and 1.95% respectively. On the same day, 262 billion yuan of reverse repurchase expired, so the net investment on the day was 159 billion yuan.
Treasury bond futures closed up collectively, with the 30-year main contract up 0.47%, the 10-year main contract up 0.09%, the 5-year main contract up 0.1%, and the 2-year main contract up 0.02%.
The yield on the main interbank interest rate bond warmed strongly in the afternoon. The yield on the 10-year Treasury Active Bond 230018 fell 2.65bp to 2.6120%, the yield on the 5-year Treasury Active Bond 230022 fell 4.00bp to 2.4700%, and the yield on the 5-year CDB Active Bond 230208 fell 3.80bp to 2.5440%.
money market
In terms of funds, the liquidity of the interbank market remained structurally differentiated on Thursday. The overnight repo weighted rate rebounded, but funds remained safe during the month, and the pace of non-bank institutions gradually accelerated over the New Year. In terms of long-term funds, the latest transaction volume of one-year interbank certificates of deposit of state-owned and major joint-stock banks was around 2.64%, a slight increase from the previous trading day. DR001 closed at 1.7003%, up 12.11bp, and 7-day reverse repo DR007 closed at 1.805%, up 0.04bp.
Source: Central Bank Open Market Data, Dianshi Fintech
Primary market
Data source: Dianshi Financial Technology
Secondary market
On December 20, the trading volume of treasury bonds fell slightly, while the trading volume of CDB bonds increased slightly. Except for the 10-year local government bond yield, which showed a downward trend, the yield of interest rate bonds generally showed an upward trend.
Data source: Dianshi Financial Technology
On December 20, industrial bonds and urban investment bonds were actively traded. Yields on industrial bonds and urban investment bonds were mixed.
Data source: Dianshi Fintech[1]
[1] The external rating agencies are: China Chengxin International Credit Rating Co., Ltd., China Chengxin Securities Appraisal Co., Ltd., United Credit Rating Co., Ltd., United Credit Rating Co., Ltd., China Bond Credit Rating Co., Ltd., Oriental Jincheng International Credit Rating Co., Ltd., CSI Pengyuan Credit Rating Co., Ltd., Dagong International Credit Rating Co., Ltd., Shanghai New Century Credit Rating Investment Service Co., Ltd. (in no particular order)
Point Stone Rating Spread Changes
*The main credit rating symbol of Dianshi is the same as that of the international mainstream rating, which is divided into 17 grades from AAA to D, which is different from the current external rating in China.
With reference to the rating model of international authoritative rating agencies, calibration through international market data, and combined with the actual improvement of the Chinese market, Dianshi Rating conducts credit rating and scoring for domestic bond issuers, and the bond rating refers to the main rating.
The distribution of Spotstone ratings is centered on BBB, with BBB- and above being investment grade bonds and BB+ and below being junk grade bonds.
Up to now, Dianshi Rating covers 18,647 entities, and the distribution of the number of rating entities is as follows:
**Spot Stone Rating Credit Spread: Bonds are classified according to the rating of Point Stone and the spread to the CDB yield curve is calculated.
Edited by Xu Ning
Disclaimer: The copyright of this article belongs to the original author, if there is a source error or infringement of your legitimate rights and interests, you can contact us by email, we will deal with it in a timely manner. E-mail address: [email protected]