Core Points - The People's Bank of China (PBOC) conducted a 7-day reverse repurchase operation of 119.9 billion yuan at an interest rate of 1.40%, maintaining the previous rate, resulting in a net injection of 41.6 billion yuan after 78.3 billion yuan of reverse repos matured on the same day [1] - Last week, the PBOC's reverse repos saw a net withdrawal of 1,572.2 billion yuan, the highest level since February 2024 [1] - The overall liquidity remains loose, with overnight funding rates (R001) stable at 1.36% and 7-day funding rates (R007) around 1.46% [1] Group 1 - The upcoming week (November 10-14) will see a significant decrease in reverse repo maturities to 495.8 billion yuan, while government bond net payments will rise to 424.2 billion yuan, indicating a potential for increased liquidity support from the PBOC [2] - Analysts suggest that despite the increase in government bond net payments, the PBOC is likely to maintain its liquidity support, which may stabilize funding rates around 1.35-1.36% for overnight rates and 1.47% for 7-day rates [3] - The PBOC's recent report emphasizes the importance of monetary policy tools in supporting inclusive finance and improving financial services in key areas such as employment and education [3] Group 2 - Overall, the payment pressure in November may be greater than in October, but with the PBOC's supportive stance, the risk of liquidity tightening is considered limited [4] - The PBOC's holdings in the government bond market are around 6%, indicating room for adjustment compared to developed countries [4] - Analysts recommend focusing less on daily fluctuations in funding prices, as the prevailing trend since June has been one of liquidity easing, with optimistic signals in recent funding characteristics [4]
一周流动性观察 | 央行公开市场本周到期规模缩量至4900+亿元 政府债净缴款压力提升
Xin Hua Cai Jing·2025-11-10 07:15