The attitude towards protecting the liquidity is clear, the 5-year land debt (159972) rose by 3 basis points, and the Penghua CSI 0-4 Year Local Government Bond ETF (159816) rose by 2 basis points.

Gelonghui, March 25 | On March 24, the central bank announced that it would conduct a 450 billion yuan MLF on the 25th. This month, 387 billion yuan of MLF is due, resulting in a net injection of 63 billion yuan on March 25. The bond market interprets this as a structural interest rate cut and a easing stance on liquidity from the central bank. This morning, driven by the central bank's supportive liquidity stance, the sentiment in the bond market is strong, with the Penghua CSI 0-4 Year Local Government Bond ETF (159816) up 2 basis points, and the 5-year land debt ETF (159972) up 3 basis points. Furthermore, this marks the first increase in MLF since July 2024, with a net MLF injection of 63 billion yuan. Additionally, considering that there will be a net payment of 455.7 billion yuan in government debt on Tuesday, which is the largest net payment day for government debt this month, the central bank's operation of 450 billion yuan MLF can effectively offset the liquidity gap caused by the government debt payment. The central bank also increased the OMO, indicating its intention to maintain liquidity, once again releasing warmth to the market. The current scale of the 5-year land debt ETF (159972) is 4.006 billion, with an average daily trading volume of 0.913 billion since the beginning of the year, primarily investing in medium to long-term local government bonds, suitable for duration management and tactical allocation, providing relatively high yield potential with low credit risk; while the current scale of the Penghua CSI 0-4 Year Local Government Bond ETF (159816) is 1.833 billion, with an average daily trading volume of 0.891 billion since the beginning of the year, primarily investing in short-term local government bonds, characterized by low volatility and stable returns, suitable for short-term fund management in the market and for investors with low-risk preferences.