央行开展7000亿买断式逆回购操作

Core Points - The People's Bank of China (PBOC) conducted a 700 billion yuan reverse repurchase operation with a term of 3 months, indicating a strategy to maintain market liquidity and support government bond issuance [1] - The operation is a continuation of the 700 billion yuan 3-month reverse repos maturing in November, with an expectation of a second operation later in the month due to an additional 300 billion yuan of 6-month reverse repos maturing [1] - The PBOC has resumed open market operations for government bonds, injecting liquidity into the market, which is seen as a dual signal for stabilizing growth and expectations [1] Industry Insights - The recent slowdown in credit issuance has led to a relatively ample liquidity situation in the banking system, reducing the need for increased liquidity injections [1] - There is a possibility of a reserve requirement ratio (RRR) cut by the PBOC before the end of the year to further lower bank funding costs and stabilize the interest margin while reducing overall financing costs in the economy [2]