Core Tip: On the 7th (Tuesday), the liquidity of the inter-bank market will not change, the supply and demand of funds will be booming, and some non-bank institutions will start to allocate funds across the weekend in advance. Under the continuous loosening of funds, the central bank will normally report the news of MLF. There was no significant impact on the funds, but the market sentiment was more optimistic, and the funds in the middle of the year were smooth.
Beijing (CNFIN.COM/XINHUA08.COM) - On June 7 (Tuesday), the liquidity of the interbank market remained unchanged, and the supply and demand of funds were booming. Some non-bank institutions began to allocate funds across the weekend in advance; Under the situation, the news of the central bank's normal inquiry of MLF did not have a significant impact on the funds, but the market sentiment was more optimistic, and the funds fabrics in the middle of the year were smooth.
The bank's overnight pledge repo weighted average interest rate fell 0.54 basis points to 1.9787% in the afternoon; the 7-day interest rate fell 2.67 basis points to 2.2691%; the 14-day interest rate rose 1.25 basis points to 2.5954%. The 1-year loan base rate (LPR) is maintained at 4.30%.
Shanghai Interbank Offered Rate (Shibor) showed that Shibor reported 2.000% overnight, up 0.20 basis points; 7 days Shibor reported 2.3400%, up 0.30 basis points; 14 days Shibor reported 2.7540%, down 0.30 basis points; 1 month Shibor reported 2.8380%, down 0.10 basis points; 3 months Shibor reported 2.9460%, unchanged from the previous period.
Traders said that the news of the central bank's MLF (interim loan lending) normalized inquiry has a positive effect on market sentiment. After all, the central bank's attitude is to maintain stability, so the funds are not worried in the short term.
According to two sources from Reuters, the central bank kept inquiring about some banks on the medium-term loan facilitation (MLF) operation on Friday and Monday, and the three-month, six-month and one-year interest rates were unchanged from the previous one. The MLF inquiry is expected to be normalized in the future.
Market participants pointed out that in the short-term, the Fed’s interest rate hike in June is expected to cool down and the central bank’s launch of the deposit reserve assessment new policy has become the two “reassurance†of stable market liquidity expectations. From the perspective of market performance, after the end of the month, the current supply of funds in the market is more sufficient, the funds are stable and loose, and the liquidity will continue in a short period of time.
However, the funding side will also be challenged by small holidays, MPA assessments, etc., and the possibility of future fluctuations will increase. In view of the fact that the central bank's support attitude for stabilizing funds is unchanged, once the funds face changes in the middle of the year, the central bank will definitely increase the amount of water to support it. Therefore, we should be cautious about the prospects for funding in June, but we don't have to be overly pessimistic.
On the morning of the 7th, the central bank launched a 7-day 50 billion yuan reverse repurchase operation in the open market. The winning bid rate was maintained at 2.25%. On the same day, 120 billion yuan of funds were due, and the net capital recovery was 70 billion yuan, which was the third consecutive transaction. The funds are returned. The central bank has placed a small amount of liquidity into the market, and still focuses on maintaining a stable pattern of funds. The monetary policy has become more substantial and stable.
This Thursday-Friday (June 9-10) coincides with the Dragon Boat Festival holiday, the open market operation is suspended, and Sunday (June 12) is the workday, and the open market resumes operation on the same day.
Beige Color Grounding Fitted Sheet
Ground Earth Sheet,Grounding Earthing Sheet,Earth Bed Fitted Sheet,Organic Cotton Fitted Sheet
Shandong EMF New Material Technology Co., Ltd , https://www.earthingsilver.com