Finance Association, May 23 (Editor Liu Chen) This morning, the Development and Reform Commission mentioned unblocking the transmission mechanism of monetary policy, preventing capital accumulation and idling, and promoting a steady decline in loan interest rates. Funding is tight during the tax period, and the bond market sentiment is warming up under the influence of the seesaw.

Specifically, treasury bond futures collectively closed higher. The 30-year main contract rose 0.41%, the 10-year main contract rose 0.08%, the 5-year main contract rose 0.05%, and the 2-year main contract rose 0.03%.

The yield on major interbank interest rate bonds declined across the board. As of 16:30 Beijing time, the yield of 10-year active treasury bonds declined by 0.5 bp to 2.304%, the yield of active 5-year treasury bonds fell 0.5 bp to 2.09%, and the yield of 10-year CDB active bonds fell 0.8 bp to 2.403%.

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

Traders said that stable, moderate and loose capital during the tax period is beneficial to the bond market. Today, the Shanghai Composite Index fell 1.33%. The bond market sentiment is good. The long-term and ultra-long end declined slightly by less than 1 bp, but the trading volume is still not as good as in the early days.

On the primary market side:

The China Development Bank's 2024 Shanghai Clearing House financial bonds (sixth additional issue) has ended. The winning bid yield was 1.9957%, with a full multiplier of 2.21 and a marginal multiple of 3.61.

On the open market side, the central bank issued an announcement stating 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 May 23 through interest rate tenders, and the winning bid interest rate was 1.80%. According to Wind data, a reverse repurchase of 2 billion yuan expired on the same day, so the amount due was completely hedged in a single day.

On the financial side, the Shibor short-end product group declined collectively. Overnight varieties reported a downward 1.0 BP of 1.769%; a 7-day downtrend of 0.9 BP of 1.829%; a 14-day downtrend of 1.8 BP of 1.919%; and a 1-month downtrend of 0.3 BP reported 1.905%, a new low since August 2023.

At the macro level, four departments including the National Development and Reform Commission issued the “Notice on Accomplishing Key Tasks to Reduce Costs in 2024", which mentions unblocking the transmission mechanism of monetary policy to avoid capital accumulation and idling; maintaining the basic stability of the RMB exchange rate at a reasonable equilibrium level; and promoting a steady decline in loan interest rates. Formulate opinions on improving the market access system, revise the new negative market access list, and promote full coverage of market entry efficiency assessments.

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, 22 Xuhui 01, 19 Luzi 04, 24 Fangyang Y1, and 20 Xuchang 01. The details are as follows:

According to Choice statistics, the top five non-financial credit bond increases in the exchange market today are: 19 Guohou01, 220,000 Ke 07, 210,000 Ke 04, 210,000 Ke 02, and PR Anfa 02. The details are as follows:

Interbank repurchase rates have mostly declined.

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

In terms of deposits, today's 3M Chinese stocks are in good demand at 1.73%-1.94%, down 0.6 bps from the previous day, and the 1Y China Stock Report is 2.075%-2.15%, down 0.5 bps from the previous day. In terms of AAA deposits, 9M transactions are at 2.115%, and 1Y transactions are at 2.125%.

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