The Volume Of Open Market Returns Sharply Decreased By &Nbsp; Short-Term Bank Interest Rates Fell Sharply.

Making decisions at the decision-making level

The central bank announced on Tuesday that it issued a 10 billion yuan 1 year central bank vote in the open market on that day. Interest rates continued to be unchanged from the previous period, but the scale of the issue dropped by 9 billion yuan compared with last week.

In addition, the central bank suspended the repo yesterday.

Insiders pointed out that the interbank market funds have tightened recently, and the first half of November.

The easing of the open market operation led to a collective fall in the short-term interbank offered rate (Shibor) in Shanghai on Tuesday, ending the rally in the past few days.

Data show that yesterday Shibor overnight varieties fell 139.25 basis points, 3.3025%; 7 days interest rate fell 58.91 basis points, reported 4.3542%; 2 week interest rate fell 139.33 basis points, reported 4.3842%; 1 month interest rate fell by 21.49 basis points, reported 5.6958%.

"Shibor has risen sharply in the early stage of the emergence of a large callback, the 10 billion yuan central bank issuance obviously can not have a substantial impact on the market price, especially after this month's reserve payment date, the funds side width is expected to be further supported by macro data."

A senior trader said that Tuesday's Shibor adjustment was drastic. In the medium term, the main trend should be slow downward, and the possibility of continuing to go up and down sharply is not large.

At the same time, analysts also said that China's official Manufacturing Purchasing Managers Index (PMI), which was released yesterday, unexpectedly fell, reflecting that the four quarter economic growth rate is still likely to decline, making the market look forward to monetary policy or further fine-tuning.

Jing Wong, an analyst with Jinyuan securities, told our correspondent that the central bank is only maintaining stability now, not just easing it at the moment, but improving market liquidity.

Last Friday, overnight repo rate and 7 day repo rate once approached 5%, while 14 days and 1 months were close to 6%.

In response to this, Jing Wong analysis said, "at that time, the 20 billion railway debt payment, the centralized deposit of Financial deposits, resulting in multiple factors superposition."

According to information statistics, the amount of funds expended in the open market this week is 107 billion yuan, slightly higher than that of last week.

Previously, the central bank has been returning funds for two consecutive weeks in the open market.

Although the reserve will bring pressure to the capital front this month, the Bank of Nanjing research report pointed out: "in the open market operation, the proportion of short-term tools within 1 months has reached more than 70%, which provides ample convenience for the central bank to flexibly arrange the future maturity, and also greatly relieves our initial worries about liquidity in November."

Guo Hai Securities believes that the domestic capital market will continue to be moderately relaxed, and the average repurchase rate for the 7 day is expected to remain at around 3%~3.5%. It is expected that in November the bond market will continue the Mavericks market and enter the market stage of the relaxation of monetary policy. But the progress of the market depends on whether the monetary policy can be relaxed and expected.