7000亿元！央行明日操作！持续释放中期流动性

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, particularly through medium-term funding tools [1][4]. Group 1: Reverse Repo Operations - The PBOC will carry out a 700 billion yuan reverse repo operation with a term of three months, which is equivalent to 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 - In October, the PBOC resumed government bond trading operations, injecting 20 billion yuan into the market, which is seen as a significant signal despite the small amount [1][6]. - The resumption of government bond operations is expected to improve market sentiment and reverse bearish expectations in the bond market [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 Expectations - Analysts believe that the PBOC's actions will help stabilize the banking system's liquidity and maintain a supportive monetary policy stance [4][5]. - The PBOC's use of reverse repos and government bond operations is aimed at managing liquidity effectively, especially in light of potential tightening pressures [4][5]. - To maintain a stable scale of government bond holdings, the PBOC may need to purchase between 700 billion to 1 trillion yuan of bonds this year [8].