[straight news network Beijing on August 12 news, Shanghai Securities News) the recent bond market unpopular, to stimulate the part of mechanism and leverage, these factors or chain reaction led to the short-term funds face tight. In view of this situation, the central bank in the open market, continuous five trading days net invested capital, so the capital side tensions yesterday eased.

August 11, the central bank to carry out the 1000 billion yuan 7 days reverse repurchase operation, after a lapse of two days later, reverse repurchase scale return to 100 billion yuan mark, releasing signal of central bank maintaining stability of the financial side. The industry is expected next week, will face 237 billion yuan medium-term borrowing facility (MLF) expires, the central bank or to continue to use a variety of monetary policy portfolio tools, stable market funds face.

Capital face "non balanced" tension

Yesterday 7 days reverse repurchase operations increased by more than 20% compared to the previous day, the bid rate continued to be flat at 2.25%. This is the open market for fifth consecutive trading days to achieve a net capital investment, a total of 110 billion yuan of total net capital investment.

From the beginning of last Friday, routine deposit reserve payment by the short-term funds face tight. Subsequently, the central bank in the open market funds from continuous net return to net invested, showing relatively positive signal of stability maintenance. But the actual net capital size is not large, monetary policy is still robust.

Although the central bank continue to launch is 7 days a period of short-term reverse repurchase funds, but careful observation is not difficult to find, the recent pattern of the tension of the inter-bank market funds face is not balanced, namely short-term funding rates rose significantly, long-term capital price does not rise down.

Shanghai Bank inter-bank demolition rate (Shibor) as an example, on August 5, so far, Shibor overnight interest rates from 2.0020% rose to 2.0210%; 7 days Shibor interest rates from 2.3170% rose to 2.3320%; but Shibor interest rates for 14 days, from the 2.6490% fell to the 2.6360%, 3 month Shibor interest rates more is lowest at the end of March this year.

"The 14 day repo rate has been maintained at 2.6%, which not only and the vast majority of period of the bonds, the interest rate inversion, and short-term financial bonds interest rate hangs upside down." In this regard, Huachuang securities fixed income team analysis pointed out that under the push of the bond market optimism, the agency continues to increase leverage led to the demand for funds continued to enlarge, the high cost of 14 day repurchase also forced institutions can only choose overnight and seven days repo, thus exacerbating the tight overnight and seven days of funds.

Monetary policy tools portfolio reproduction

For since the 5th of August of the current round of funding the surface tension of the reason, market mainstream view that the or and foreign exchange outflow and bond market leverage capital requirement is related to the increasing. On the one hand, the U. S. Federal Reserve interest rate hike expected warming up the US dollar, RMB to dollar depreciation pressure reduction; on the other hand, yesterday debt ten-year bond yields down again, fell to 2.69%, the bond bull market atmosphere help up the passion of leveraged transactions, enhance the demand for funds.

The reporter understands, although yesterday morning market funds face relatively tight, but after central billion yuan reverse repurchase put in, the surface tension of funds have improved markedly. According to traders said yesterday before midday most organizations have filled positions, tension had eased yesterday.

Outlook next week, wind data show, next week there is a maturity of two strokes of the MLF, totaled 23.7 billion yuan, which August 16th and 19th respectively 17.5 billion yuan and 620 billion yuan maturity. But on the other hand, in August 13th 75 billion 500 million yuan for three years since the central ticket expires Saturday will be postponed to the next week due to factors.

CITIC Securities obviously bond team believes that the central bank does not exist the possibility of a large-scale rescue, RRR cuts such as irrigation type monetary policy is not suitable for the current Chinese economy, open market operations with the MLF and other monetary policy combination, is at present and the future of monetary policy the optimal selection. Although the funds face more pre tightening, but the combination of monetary policy of maintaining stability in the, market on August liquidity need not too pessimistic. 3

(original title: reverse repurchase billions of funds return to stability maintenance release signal)

Editor: Xiao Shen

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