Bond Market Overview //
1. Open Market Operations
On April 28, 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 (April 27 to May 3), the central bank will have 4 billion yuan of reverse repurchase due in the open market, of which 2 billion yuan will be due on Monday and Tuesday, and Wednesday to Friday is the Labor Day holiday, during which all the funds due will be postponed to after the holiday.
(*Data source: Wind-Central Bank Dynamic PBOC)
2. Funding side
April 28 is the working day before the "May Day" holiday, although most of the non-bank institutions are closed according to the usual practice, and the treasury bond futures are also closed, the yield of spot bonds in the interbank bond market still continues to rise sharply. Traders said that the central bank has become more concerned about the risks of long-term bonds, and continues to cautiously wait and see the policy developments related to long-term bonds.
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 trading volume of one-year interbank certificates of deposit of state-owned and major joint-stock banks was around 2.17%, up 5-6bp from the end of the previous day.
(*Source: Wind-Interbank Certificate of Deposit-Issuance Results)
4. The yield of major interbank interest rate bonds rose across the board.
(*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 bond futures are closed.
News //
1. The People's Bank of China, the National Development and Reform Commission, the Ministry of Finance and other four departments held a meeting to promote large-scale equipment renewal and consumer goods trade-in finance, requiring strengthening communication with industry authorities, identifying work priorities, accelerating project docking, and actively meeting the financing needs of key areas;
2. The People's Bank of China held the 2024 Payment and Settlement Work Conference, which called for comprehensively strengthening payment supervision, strengthening regulatory capacity building, firmly guarding the red line of reserve fund supervision, and building a healthy and orderly payment market. It is necessary to balance risk prevention and control with the optimization of services, and steadily promote the precise governance of the "capital chain" involving fraud and gambling. It is necessary to deepen international cooperation and openness in the field of payment, and optimize RMB cross-border payment services.
Global Macro //
1. According to the China Council for the Promotion of International Trade, the global economic and trade friction index was 299 in February, continuing to be in the high range. The amount of global economic and trade friction measures increased by 8.3% year-on-year.
2. The Thai cabinet has completed a new round of reshuffle, and Thai Prime Minister Saitha will no longer serve as the Minister of Finance, and the current Prime Minister's adviser Pichai will serve as the Minister of Finance.
Bond Events //
1. Chengdu cancels purchase restrictions: housing transactions will no longer review the qualifications for house purchases, and there will no longer be restrictions on the number of units purchased
2. According to people familiar with the matter, a branch of the central bank of a province in East China has provided window guidance to some rural commercial banks to buy bonds, requiring them to reduce the duration of bonds
3. Shanghai Headquarters of the People's Bank of China: Focus on increasing credit support for the first loan of small and medium-sized technology-based enterprises
4. The Ministry of Finance will tender for the renewal of 2-year book-entry interest-bearing treasury bonds totaling 121 billion yuan on May 8
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]!