Bond Market Overview //
1. Open Market Operations
On April 22, the central bank launched a 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 2 billion yuan of reverse repurchase expired on the same day, so the maturity volume was fully hedged in a single day.
(*Data source: Wind-Central Bank Dynamic PBOC)
2. Funding side
At the time of the tax period, the overall liquidity of the interbank market was still warm on Monday, while the lending of banking institutions converged slightly, and the weighted rate of major repo changes little.
Overseas, the latest U.S. overnight financing guarantee rate is 5.30%.
（IMM）
(*Data source: Wind-International Monetary Fund Sentiment Index, Capital Composite Screen)
3. Interbank certificates of deposit
The latest second-level trading volume of one-year interbank certificates of deposit of state-owned and major joint-stock banks was around 2.015%, down about 3 bp from the previous day.
(*Source: Wind-Interbank Certificate of Deposit-Issuance Results)
4. The yields of major interbank interest rate bonds mostly fell
(*Source: Wind-Transaction Statistics BMW)
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 up across the board
The main 30-year contract rose 0.15%
The main 10-year contract rose 0.04%
The main 5-year contract rose 0.06%
The main 2-year contract rose 0.03%.
Shared from Wind (*Data source: Wind-Treasury Futures)
News //
1. China's April LPR "stood still". The National Interbank Funding Center authorized by the central bank to announce that the one-year money market prime rate (LPR) was 3.45% and the five-year LPR was 3.95% in April, both unchanged from March. The analysis pointed out that due to the large net interest margin pressure faced by some banks, coupled with the medium-term lending facility (MLF) interest rate remained stable in April, the market has expected that the LPR quotation will remain unchanged in April. In the short term, there is a lack of further downward mobility in the LPR.
2. The Ministry of Finance said that it has included the 2024 ultra-long-term special government bond expenditure in the 2024 budget, and at the same time made solid progress in the preliminary preparations. In the next step, the Ministry of Finance will start the issuance of ultra-long-term special treasury bonds in a timely manner according to the project allocation of ultra-long-term special treasury bonds.
Global Macro //
1. According to the survey results released by the Ministry of Finance of Japan, 63.1% of medium-sized and small and medium-sized enterprises nationwide have raised their basic wages in FY2024, an increase of 8.8 percentage points from 54.3% in FY2023. In terms of the increase in wages, 53.8% of large enterprises saw a combined increase of more than 5% in basic wages and regular salary increases.
2. The SNB is increasing the minimum reserve requirements for domestic banks and amending the National Bank Regulation to this end, effective July 1, 2024. Going forward, liabilities arising from cancelable client deposits (excluding linked pension reserves) will be fully included in the calculation of the minimum reserve requirement in the same way as other related liabilities. This removes the previous exception that only 20 per cent of these liabilities were included in the calculation. The SNB also raised the minimum reserve ratio from 2.5% to 4%.
Bond Events //
1. Rongqiao Group: overdue corporate debts and accumulated litigation and arbitration
2. R&F Properties was forced to enforce 200 million
3. The two subsidiaries of Territory Holdings were summoned by the court to attend the hearing of the bankruptcy application
4. Guangzhou Trading Investment: The company's subsidiaries are involved in major litigation
Negative Bond Events of the Week:
(*Source: Wind-Negative Bond Events)
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]!