Bond Market Overview //
1. Open Market Operations
On April 25, 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 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
On Thursday, the overall funding situation in the interbank market remained stable, and the weighted rate of major repos increased slightly.
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 2.0646%, 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 0.35%
The main 10-year contract fell 0.03%
The main 5-year contract rose 0.02%
The main 2-year contract rose 0.04%.
Shared from Wind (*Data source: Wind-Treasury Futures)
News //
1. According to a report released by the Institute of International Finance (IIF), in March this year, China's stock market and bond market received net purchases of foreign funds at the same time, amounting to US$1.7 billion and US$2.1 billion respectively, for the first time since June last year.
2. Central Huijin Investment Co., Ltd. plans to issue 24 billion yuan of medium-term notes, including 9 billion yuan of the second phase of medium-term notes in 2024 and 15 billion yuan of the first phase of medium-term notes (additional issuance) in 2024.
Global Macro //
1. ECB Governing Council member Nagel said that the June rate cut will not necessarily be followed by a series of rate cuts, and that services inflation remains high and cannot be pre-committed to a specific interest rate path, driven by continued strong wage growth.
2. Bank of Canada: Monetary policy easing is expected to be "gradual", officials are more concerned about upside risks to inflation, there is disagreement on when conditions will arise that will require interest rate cuts, and some members believe that there are risks in keeping monetary policy too tight given the decline in inflation.
Bond Events //
1. Standard & Poor's: Downgrade the long-term issuer credit ratings of Metro Development and Metro Holdings to "B", with a "negative" outlook
2. Country Garden's partial onshore bond extension plan was approved
3. Shenzhen Anju Group: Facing an arbitration of 8 billion yuan for equity transfer
4. Fantasia Holdings: The deadline for the restructuring support agreement has been extended to April 26, 2024
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]!