Bond Market Overview //
1. Open Market Operations
On April 12, the central bank launched a 7-day reverse repurchase operation of 2 billion yuan in the form of interest rate bidding, and the winning interest rate was 1.8%. Wind data shows that there is no reverse repurchase expiration on the same day, so the net investment in a single day is 2 billion yuan. This week, the central bank carried out a total of 12 billion yuan of reverse repurchase operations, because 406 billion yuan of reverse repurchase expired, achieving a net withdrawal of 394 billion yuan.
There will be 12 billion yuan of reverse repo due in the open market of the central bank next week, of which 4 billion yuan will mature on Monday and 2 billion yuan will mature daily from Tuesday to Friday. In addition, there will be another 170 billion yuan of MLF due on Wednesday.
(*Data source: Wind-Central Bank Dynamic PBOC)
2. Funding side
The wider the interbank funds, the more abundant the supply, the main repo rate remained stable, and the financing cost of non-bank institutions continued to fall, and their borrowing overnight prices were around 1.7%-1.85%.
Overseas, the latest U.S. overnight financing guarantee rate is 5.31%.
(*Data source: Wind-International Monetary Fund Sentiment Index, Capital Composite Screen)
3. Interbank certificates of deposit
The latest trading volume of one-year interbank certificates of deposit of state-owned and major joint-stock banks was around 2.07%, down about 6bp from the end of the previous day.
(*Source: Wind-Interbank Certificate of Deposit-Issuance Results)
4. The yield of major interbank interest rate bonds fell collectively
(*Data source: Wind-Transaction Statistics)
5. Recent trend and data of interest rate spreads of various maturities of urban investment bonds (AAA).
(*Source: Wind-Spread Analysis)
6. Treasury futures closed collectively higher
The main 30-year contract rose 0.26%,
The main 10-year contract rose 0.23% to 104.395 yuan, a new high since listing
The main 5-year contract rose 0.09%
The main 2-year contract rose 0.02%.
Shared from Wind (*Data source: Wind-Treasury Futures)
News //
1. Li Qiang presided over the executive meeting of the State Council to study and improve the measures to solve the long-term mechanism of enterprise account arrears, and to study the work related to promoting the accelerated rise of the central region in the new era. The meeting deliberated and approved the "2024-2025 Energy Conservation and Carbon Reduction Action Plan" and the "Work Plan for Accelerating the Construction of a Carbon Emission Dual Control System".
2. China's capital market ushered in the third "National Nine Articles". The State Council issued the "Several Opinions on Strengthening Supervision and Preventing Risks and Promoting the High-quality Development of the Capital Market", which consists of nine parts. This is the first time in 10 years that the State Council has issued a guiding document on the capital market after the two "National Nine Articles" in 2004 and 2014. The opinions require that the listing standards of the main board and the Growth Enterprise Market be raised, and the evaluation standards for the scientific and technological innovation attributes of the Science and Technology Innovation Board should be improved; the reform of the delisting system should be deepened, and the normalized delisting pattern should be accelerated and cleared in a timely manner; the medium and long-term funds should be clearly and vigorously promoted to enter the market, and the basic system suitable for long-term investment should be improved, and the policy system supporting "long-term money and long-term investment" should be built; the market-oriented, legalized and diversified bond default risk disposal mechanism should be improved, and the debt evasion should be resolutely cracked down; Breakthroughs have been made in the support of equity and debt financing for key core technology enterprises, and the formulation of regulations on the management of corporate bonds has been accelerated.
3. In the first quarter, the scale of the mainland's foreign trade import and export exceeded 10 trillion yuan for the first time, and the growth rate of import and export hit a new high in six quarters. Among them, exports in the first quarter were 5.74 trillion yuan, an increase of 4.9 percent, and imports in the first quarter were 4.43 trillion yuan, an increase of 5 percent. The data also showed that in dollar terms, China's exports fell by 7.5% year-on-year in March, imports fell by 1.9%, and the trade surplus was 58.55 billion US dollars.
4. China's broad money (M2) balance at the end of March was 304.8 trillion yuan, up 8.3% year-on-year. In the first quarter, the cumulative increase in the scale of social financing was 12.93 trillion yuan, 1.61 trillion yuan less than the same period last year. In the first quarter, RMB loans increased by 9.46 trillion yuan and RMB deposits increased by 11.24 trillion yuan.
Global Macro //
1. The Bank of Korea kept the benchmark interest rate unchanged at 3.5% for 10 consecutive times, in line with market expectations. Bank of Korea Governor Rhee Chang-yong said that if CPI slows down in the second half of the year, interest rate cuts will be considered.
2. The MAS keeps the slope, width and midpoint of the currency range unchanged.
Bond Events //
1. The Shanghai and Shenzhen Stock Exchanges intend to improve the listing conditions on the Main Board
2. The Shanghai and Shenzhen Stock Exchanges will implement the relevant requirements of the regulations on the management of programmatic trading, and continue to improve the regulatory arrangements for programmatic trading
3. The Ministry of Commerce and 14 other departments issued the "Action Plan for Promoting the Trade-in of Consumer Goods"
4. Li Quan, the former chairman of Xinhua Insurance, is suspected of missing contact
The risk of non-standard assets of urban investment this month
(*Data source: Wind-Risk Monitoring RISK)
Upcoming Programs //
Every Monday at 3 p.m. from March 11th, Wind will join hands with Bank of Shanghai to bring a new series of Wind Live columns [In-depth Discussion on the Bond Market]!
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