Bond Market Overview //
1. Open Market Operations
On April 24, 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, the reverse repurchase of 2 billion yuan expired and 70 billion yuan of treasury cash fixed deposit bidding will be carried out, so the net investment of 70 billion yuan in a single day is full.
(*Data source: Wind-Central Bank Dynamic PBOC)
2. Funding side
On Wednesday, the overall supply of funds in the interbank market remained abundant, and the weighted rate of major repo remained in a narrow range.
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 2.0395%, up 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 fell 1.17%
The main 10-year contract fell 0.36%
The 5-year main contract fell 0.17%
The main 2-year contract fell 0.07%.
Shared from Wind (*Data source: Wind-Treasury Futures)
News //
1. According to the Financial Times, long-term Treasury yields have continued to decline in recent times, with the yield on 30-year Treasury bonds falling below 2.5%. The head of the relevant department of the central bank said that the yield of long-term government bonds will generally operate within a reasonable range that matches the long-term economic growth expectations.
2. The National Development and Reform Commission and the Ministry of Finance completed the screening of 5.9 trillion special bond projects. Financial and tax experts said that with the completion of the review of local special bond projects, the next step will be to speed up the issuance of special bonds, according to the practice of previous years, will basically complete the annual 3.9 trillion yuan of new special bonds by the end of October, so as to form a physical workload as soon as possible.
Global Macro //
1. The European Parliament voted to approve the Stability and Growth Pact reform bill, which states that the annual fiscal deficit of EU member states shall not exceed 3% of their gross domestic product (GDP) and public debt shall not exceed 60% of GDP.
2. ECB Vice President Guindos said that the fight against inflation is coming to an end, with the biggest potential threat coming from services inflation, and that if there are no surprises, a rate cut in June looks like an agreement.
Bond Events //
1. Poly Development's net profit in 2023 will be 12.067 billion, a year-on-year decrease of 34.13%
2. Guangxi Agricultural Reclamation: The company's outside directors are subject to disciplinary review and supervision investigation
3. Hongda Xingye Group: The court ruled to declare the company bankrupt
4. Bijie Xintai Investment Atomic Company was listed as a dishonest person subject to execution and overdue bills
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]!