Financial Services Association, March 21 (Editor Liu Chen) The Federal Reserve's interest rate remains unchanged, and Powell's remarks are biased. Trading sentiment in the bond market weakened, and the intraday amplitude was around 2 bp.

Treasury bond futures mostly rose at the close. The 30-year main contract fell 0.28%, the 10-year main contract rose 0.1%, the 5-year main contract rose 0.13%, and the 2-year main contract rose 0.06%.

Yields on major interbank interest rate bonds have declined for the most part. As of 16:50 Beijing time, the yield of 10-year active treasury bonds declined by 1.5 bp to 2.315%, the yield of 5-year active treasury bonds fell 2.5 bp to 2.05%, and the yield of 10-year CDB active bonds fell by 1 bp to 2.429%.

(Data source: Wind, compiled by the Financial Federation)

Traders said that the Federal Reserve interest rate remained unchanged in line with market expectations, but Powell's statement was biased against market expectations and did not have much impact on the bond market. Today's cash trading activity declined, with a limited amplitude of around 2 bp.

On the macro side, on March 21, Xuan Changneng, deputy governor of the People's Bank of China, said at the press conference of the State Information Office that the downgrade would reduce demand for reserves, release long-term liquidity, and have an alternative effect on central bank capital; the central bank will increase its debt to deposit-type financial institutions and actively invest in liquidity. If the downgrade is a little more, the central bank's balance sheet will expand less; if the downgrade is a little less, the central bank's balance sheet will expand more. What kind of tools are used specifically, needs to be adapted to the needs of different situations, and there will also be more or less quantity. Overall, the purpose is to create a good monetary and financial environment.

The Federal Reserve decided to keep the federal funds rate target range between 5.25% and 5.50% in March. This is the fifth time that interest rates have remained unchanged, in line with market expectations.

On the primary market side:

We learned from the Shanghai Clearing House that the China Development Bank's tender for the 20th issue of the 2023 issue of the Shanghai Clearing House financial bonds (14th additional issue) has ended. The winning bid yield was 2.6042%, with a total multiplier of 3.94 and a marginal multiple of 4.18.

The exchange bond market closed, and real estate bonds had mixed ups and downs.

According to Choice statistics, the top five declines in non-financial credit bonds in the exchange market today are: 20 Yangcheng 04, H1 Jinke 03, 20 Yangcheng 01, 20 Baolong 04, and 21 Laibin 02. The details are as follows:

According to Choice statistics, the top five non-financial credit bond gains in the exchange market today are: 20 Xuhui 02, 19 Jinke 08, 19 Jinke 03, 21 Longhu 02, and 200,000 Ke 02. The details are as follows:

On the open market side, the central bank announced that in order to maintain reasonable and abundant liquidity in the banking system, a 7-day reverse repurchase operation of 2 billion yuan was launched on March 21 through interest rate tenders, and the winning bid interest rate was 1.80%. According to Wind data, a reverse repurchase of 3 billion yuan expired on the same day, resulting in a net return of 1 billion yuan in a single day.

On the financial side, the performance of the Shibor short-end product is divided. Overnight varieties reported an upward 0.6 BP report of 1.771%; a 7-day downward 1.0 BP report of 1.834%; a 14-day downward 1.5 BP report of 2.123%; and a 1-month upward 0.3 BP report of 2.126%.

Interbank repurchase interest rates have mostly risen:

(Data source: Choice, compiled by the Financial Federation)

Interbank repurchase fixed interest rates are mostly flat. FR001 rose 2.0 basis points to 1.92%; FR007 remained flat at 2.0%; FR014 remained flat at 2.2%.

Most fixed interest rates for bank-to-bank repurchases are flat. FDR001 was flat at 1.78%; FDR007 fell 3.0 basis points to 1.87%; FDR014 was flat at 2.15%.

In terms of deposits, today's 3M Chinese stocks are in good demand at 2.11%-2.19%, up 0.5 bps from the previous day, and the 1Y China Stock Report is in 2.25%-2.32% position, up 1 bps from the previous day. In terms of AAA deposits, 9M transactions are at 2.26%, and 1Y transactions are at 2.335%.

(Data source: Choice, compiled by the Financial Federation)