According to traders, this morning's cross-month fund prices fell due to the bullish effect of the equity market decline, while the bond market sentiment was high. The Caixin PMI recorded 51.7, the highest since July 2022.
On June 3rd, Caixin PMI rose by 0.3 percentage points to 51.7, the highest since July 2022. Most of the bond futures main maturities fell.
In particular, the bond futures closed up collectively, with the 30-year block orders up 0.23%, the 10-year block orders up 0.16%, the 5-year block orders up 0.11%, and the 2-year block orders up 0.06%.
Most of the main interest rate bond yields in the interbank market fell. As of 16:30 Beijing time, the yield of the active 10-year treasury bond ticket 240004 fell 0.8bp to 2.309%; the yield of the active 30-year treasury bond ticket 230023 fell 1.1bp to 2.554%; the yield of the active 10-year national debt ticket 240205 fell 1.1bp to 2.396%.
(Data source: QB, compiled by Cailian Press)
Traders stated that this morning the bullish news from the equity market decline and cross-month capital price decline led to the rise of the bond market sentiment. Interbank futures performed better than spot block orders. Although the longs were willing to buy, they still showed a wait-and-see attitude near the whole number level.
In terms of macro data, the Caixin China Manufacturing PMI for May was 51.7, up 0.3 percentage points month-on-month, the highest since July 2022, indicating that manufacturing production and operations are accelerating. Experts stated that the manufacturing prosperity maintained a positive trend in May, and supply, demand, and exports expanded to varying degrees. Companies maintained an optimistic attitude, but price levels remained low, especially on the sales side. Manufacturing employment has been shrinking for several consecutive months, and enterprise expansion attitudes are cautious.
In terms of the primary market:
In terms of the open market, the People's Bank of China announced that in order to maintain reasonable and sufficient liquidity in the banking system, a 7-day reverse repo operation of CNY 2 billion was conducted at an interest rate bidding of 1.80% on June 3. Wind data shows that there are CNY 2 billion reverse repurchases due on the day, so the entire amount due was completely hedged.
In terms of funding, most Shibor short-term varieties fell. Overnight varieties fell by 8.2BP to 1.723%; 7-day varieties fell by 4.0BP to 1.811%; 14-day varieties fell by 1.1BP to 1.857%; 1-month varieties fell by 0.2BP to 1.905%.
In terms of the exchange bond market at the close, real estate bonds rose and fell unevenly.
According to Choice data statistics, the top five non-gold credit bond declines in the exchange market today are: H1 Bi Di 03, PR Yu Zhong 01, 21 Jian Qiao 02, 23 Ji Kong 01, and 20 Vanke 08. They are as follows:
According to Choice data statistics, the top five non-gold credit bond increases in the exchange market today are: 21 Chang Gao G2, 23 Run Zhi 05, 21 Zhu Tou 01, 22 Bu Dong 02, and 21 Xu Hui 02. They are as follows:
Most of the bond repurchase rates in the interbank market fell.
(Data source: Choice, compiled by Cailian Press)
In terms of deposit certificates, demand for the 3M period national stocks was good at the 1.87% -1.925% level today, down 1bp from the previous day, and the 1Y period national stocks were reported at the 2.05% -2.14% level, unchanged from the previous day. For AAA-rated deposit certificates, the 9M transaction was at 2.08% and the 1Y transaction was at 2.095%.
(Data source: Choice, compiled by Cailian Press)