Bond Market Overview //
1. Open market operations
On May 14, 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 Tuesday, funds in the interbank market continued to maintain an accommodative situation, with the main repo rate falling steadily and slightly, and the overall supply and demand were stable and worry-free.
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 2.08%, little changed from the previous day.
(*Source: Wind-Interbank Certificate of Deposit-Issuance Results)
4. The yield of major interbank interest rate bonds fell 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 futures closed collectively higher.
The main 30-year contract rose 0.11%
The main 10-year contract rose 0.02%
The main 5-year contract rose 0.03%
The main 2-year contract rose 0.01%
(*Source: Wind-Treasury Futures)
News //
1. The Bank for International Settlements (BIS) held a regular meeting of its governors in Basel, Switzerland, attended by Pan Gongsheng, Governor of the People's Bank of China. The central bank governors discussed and exchanged views on the global economic and financial situation, the adjustment of the monetary policy framework of advanced economies, and the resilience of emerging market economies.
2. The Ministry of Commerce said that in the next step, it will work with relevant departments and localities to actively support the six central provinces to vigorously consolidate the basic market of foreign investment and foreign trade, improve the domestic trade circulation system, accelerate the construction of open platforms such as the China-Africa Economic and Trade In-depth Cooperation Pilot Zone and the Pilot Free Trade Zone, support the central region to better serve and integrate into the new development pattern, and promote high-quality development.
3. The "Special Implementation Plan for Further Increasing the Attraction and Utilization of Foreign Investment in Guangdong Province" was released. The Plan proposes that for foreign-invested enterprises established in the six cities of Guangzhou, Shenzhen, Zhuhai, Foshan, Dongguan and Zhongshan, if the total annual new actual foreign capital reaches 50 million US dollars or more, the high-tech manufacturing enterprises will be rewarded at a rate not higher than 3% of the new actual foreign capital.
Global Macro //
1. Japanese Finance Minister Shunichi Suzuki: The Bank of Japan and the government have been working hard to end deflation, and it is important that the exchange rate reflects the fundamentals in a way that fluctuates steadily, and that we will pay close attention to exchange rate fluctuations and will take thorough measures to respond to exchange rate fluctuations, and will respond to fluctuations in government bond yields as needed.
2. Bank of England Chief Economist Peele: Good progress has been made in returning CPI to target; Efforts are still needed to ensure that inflation reaches the 2% target; The negative effects of energy are about to disappear; Interest rate cuts may be considered in the summer; Interest rates can be cut while maintaining a tightening stance; As inflation persists less, policy restrictions need to be reduced.
Bond Events //
1. Dagong International downgraded the credit rating of "H17 Contemporary 1" to C
2. "21 Elu Y2" will be redeemed in full on July 1
3. Agile Group has not paid interest on the 2020 Notes
4. Bohai Securities received the "Notice of Case Filing" from the China Securities Regulatory Commission
5. "21 Aoyuan Bonds" and other bonds resumed trading from the opening of the market on May 15
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]!