Core Viewpoint - The People's Bank of China (PBOC) has announced adjustments to the 14-day reverse repurchase operations to maintain ample liquidity in the banking system and better meet the differentiated funding needs of various institutions [1][4]. Group 1: Reverse Repo Operations - The 14-day reverse repurchase is a short-term liquidity adjustment tool where the central bank buys government bonds and sells them back after 14 days, aimed at releasing short-term funds to meet market liquidity demands [4]. - The recent operation on September 23, 2024, involved a fixed rate and quantity tender, with 1,601 billion yuan for the 7-day and 745 billion yuan for the 14-day reverse repos, where the 14-day rate was set at 15 basis points above the 7-day rate [4]. - The adjustment to fixed quantity, rate tender, and multiple price bidding for the 14-day reverse repo strengthens the policy position of the 7-day reverse repo rate, which has been emphasized as the main policy rate by the PBOC [6]. Group 2: Liquidity Management - The initiation of the 14-day reverse repo operation earlier than in previous years allows for a 17-day actual occupation period, which, combined with a prior net injection of 300 billion yuan, helps alleviate preemptive funding needs before the quarter-end and holidays [6]. - The announcement indicates that the timing and scale of the 14-day reverse repo operations will be determined based on liquidity management needs, suggesting a more flexible approach compared to past practices [7]. - Future operations may involve a combination of long, medium, and short-term instruments to smooth out the rhythm of fund injection and withdrawal, leading to more precise and efficient liquidity management [7].
14天期逆回购改为“多重价位中标” 央行流动性管理更趋精细
2 1 Shi Ji Jing Ji Bao Dao·2025-09-19 11:17