Bond Market Overview //
1. Open Market Operations
On April 23, 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 on the same day, 2 billion yuan of reverse repurchase and 70 billion yuan of treasury cash fixed deposit expired. In addition, the central bank will conduct a tender for 70 billion yuan of treasury cash fixed deposit on April 24.
(*Data source: Wind-Central Bank Dynamic PBOC)
2. Funding side
On Tuesday, the supply of liquidity in the interbank market was worry-free, and the weighted rate of major repo remained stable and the volatility was limited. Traders said that funds continued to improve to easing, and the institutional mentality was stable across the month, and they were concerned about the attitude of the central bank at the end of the month.
Overseas, the latest U.S. overnight financing guarantee rate is 5.31%.
（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 2.01%, little changed from the previous trading 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 0.49% to a new high
The main 10-year contract rose 0.17% to a new high
The main 5-year contract rose 0.11%
The main 2-year contract rose 0.03%.
Shared from Wind (*Data source: Wind-Treasury Futures)
News //
1. From April 22nd to 23rd, General Secretary Xi Jinping inspected and investigated in Chongqing. He successively visited Chongqing International Logistics Hub Park, Xiejiawan Sub-district Democratic Village Community in Jiulongpo District, and Chongqing Digital City Operation and Governance Center to learn about the local acceleration of the construction of the new western land-sea corridor, the implementation of urban renewal and the improvement of people's livelihood, and the improvement of the modernization level of urban governance.
2. The National Development and Reform Commission and the Ministry of Finance have completed the screening of local government special bond projects in 2024, screening and passing about 38,000 special bond projects, with a special bond demand of about 5.9 trillion yuan in 2024, laying a solid project foundation for the issuance and use of 3.9 trillion yuan of special bonds this year.
3. The Ninth Session of the Standing Committee of the 14th National People's Congress was held in Beijing. Entrusted by the State Council, Liao Min, vice minister of finance, made a report on the study and handling of the deliberation opinions of the special report on the management of state-owned assets of financial enterprises and the situation of rectification and accountability. The report puts forward ideas and measures to improve the work from the aspects of optimizing the functional positioning and strategic layout of state-owned financial capital, improving the management system and mechanism of state-owned financial capital, promoting the quality and efficiency of financial state-owned assets and state-owned enterprises, improving the level of financial services for the real economy, and strengthening the risk prevention and control of state-owned financial assets.
Global Macro //
1. The Japanese government said that despite the recent signs of slowdown, the Japanese economy is still recovering moderately.
2. The UK composite PMI recorded 54 in April, a new high in 11 months. S&P said the preliminary UK PMI for April showed that the UK economy continued to gain momentum from last year's recession. Improved growth in the services sector offset another downturn in the manufacturing sector.
Bond Events //
1. Ministry of Finance: Support the gradual increase in the purchase and sale of treasury bonds in the open market operation of the central bank
2. Beijing: Applicants who have been divorced for less than one year and do not have a complete set of housing in their names will be subject to the first home credit policy
3. Chengdu local auction gave birth to a new unit price "land king"
4. Chairman of Gemdale Group: We are confident that we will pass all the debt repayment peaks this year, and shareholder support plans will be introduced one after another
5. Citi issued its first "Maple Leaf Bond" in nearly 10 years
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]!