Citic Securities pointed out that, according to calculations, there is basically no liquidity gap in December, but the mismatch between government bond supply and fiscal expenditure will cause disturbances in the funding market around the middle of the month. In addition to the maturity of MLF and seasonal factors, it is not ruled out that the central bank will cut the reserve requirement ratio by 50 basis points in December, or use various tools such as repurchase agreements and buying government bonds to smooth out funding market fluctuations. As for the bond market, the pressure of government bond supply and the game of policy expectations will cause disturbances in interest rates, but as long as the central bank's protection of the funding market is sufficient, there is still downward space for interest rates. After the supply gradually lands, attention can be paid to the trading opportunities brought by the flattening of the curve.