14天期逆回购操作机制迎调整，7天期逆回购政策利率地位再强化

Core Viewpoint - The People's Bank of China (PBOC) has adjusted its open market operations, specifically the 14-day reverse repurchase agreement, to a fixed quantity, interest rate bidding, and multiple price bidding system to better meet the liquidity needs of different financial institutions [1][5]. Group 1: Policy Changes - This marks the second adjustment of open market tools by the PBOC in 2025, shifting from single price bidding to multiple price bidding [5]. - The change from "fixed rate, quantity bidding" to "fixed quantity, interest rate bidding, multiple price bidding" allows the PBOC to determine the timing and scale of fund injections based on actual market demand [5][6]. - The 14-day reverse repo adjustment aligns with the medium-term lending facility (MLF) operations, which have also transitioned to a fixed quantity, interest rate bidding, and multiple price bidding format [6]. Group 2: Market Implications - The adjustment is expected to enhance the market's ability to price funds autonomously and better reflect the actual supply and demand for funds [5]. - The 7-day reverse repo rate remains the only policy rate, while other reverse repo operations and MLF are now based on market-driven rates [6]. - Analysts predict that the PBOC will restart the 14-day reverse repo operation to alleviate liquidity pressure ahead of the National Day holiday, with potential interest rate adjustments [7].