7000亿元！央行，明日操作！

Core Viewpoint - The People's Bank of China (PBOC) is set to conduct a 700 billion yuan reverse repurchase operation on November 5, indicating a continuation of liquidity support in the market [1][4]. Group 1: Reverse Repo Operations - The PBOC will conduct a 700 billion yuan reverse repo operation with a term of three months, effectively rolling over the same amount of maturing reverse repos [1]. - Market institutions expect the PBOC to conduct another six-month reverse repo operation in November, maintaining a net injection of liquidity [1][4]. - Since October last year, the PBOC has consistently used reverse repo operations to address medium to long-term funding gaps [4]. Group 2: Government Bond Operations - The PBOC resumed government bond trading operations in October, injecting 20 billion yuan, which is seen as a significant signal for the market despite the small amount [4][6]. - The resumption of government bond operations is expected to improve market expectations and contribute to a reversal of bearish sentiment in the bond market [6][7]. - The 10-year government bond yield has decreased from 1.8423% to 1.7984% following the announcement of resumed operations, indicating a positive market response [7]. Group 3: Market Impact and Future Outlook - The PBOC's actions are aimed at stabilizing the banking system's liquidity and maintaining a supportive monetary policy stance [4][5]. - Analysts suggest that the PBOC will continue to use a combination of reverse repos and medium-term lending facilities (MLF) to inject liquidity into the market [5]. - To maintain a stable scale of government bond holdings, the PBOC may need to purchase between 700 billion to 1 trillion yuan in government bonds this year [8].