1.6万亿逆回购将到期，央行连续5个月加量续作MLF

Core Viewpoint - The central bank has been actively engaging in MLF operations to stabilize the market and ensure overall liquidity remains steady, with a net injection of 100 billion yuan in July, marking five consecutive months of net MLF injections [1][2][6]. Group 1: Central Bank Operations - On July 25, the central bank conducted a 400 billion yuan MLF operation, resulting in a net liquidity injection of 100 billion yuan, aimed at releasing medium to long-term liquidity [1][2]. - The MLF balance reached 52.5 billion yuan following the operation, indicating a continued trend of moderate monetary policy [2]. - The central bank's actions reflect a precise adjustment strategy, balancing liquidity needs with market conditions, as evidenced by the lower net MLF injection in July compared to June [6]. Group 2: Market Reactions - On July 24, the market experienced an unexpected tightening, with overnight rates rising above 1.65%, indicating increased demand for cross-month funds [1][3]. - Despite the tightening, rates for R001 and DR001 fell slightly on July 25, while 7-day rates continued to rise, suggesting ongoing pressure in the funding market [3]. - Experts believe that the month-end factors, including significant maturities of reverse repos and MLF, contributed to the market's volatility [4][5]. Group 3: Future Outlook - Analysts anticipate that the cross-month funding situation will stabilize due to the central bank's supportive stance and the expected release of fiscal funds at month-end [7][8]. - The central bank is expected to maintain a steady liquidity supply, particularly during seasonal tightness, with a focus on optimizing structural efficiency rather than altering the overall liquidity strategy [8]. - The upcoming months may see increased government bond supply, which could heighten the demand for stable funding, prompting the central bank to utilize various tools to manage liquidity effectively [8].