Core Viewpoint - The People's Bank of China (PBOC) is actively engaging in liquidity management by conducting significant reverse repurchase operations to support the financial market during a critical liquidity assessment period in June [1] Group 1: Reverse Repo Operations - In early June, the PBOC announced a 1 trillion yuan (approximately 140 billion USD) three-month reverse repurchase operation [1] - On June 13, the PBOC announced an additional 400 billion yuan (approximately 56 billion USD) reverse repurchase operation with a six-month term [1] - A total of 1.2 trillion yuan (approximately 168 billion USD) in reverse repos is set to mature throughout June, indicating a net liquidity injection for the month [1] Group 2: Market Conditions - The liquidity demand from financial institutions is expected to be high in June due to the significant maturity of interbank certificates of deposit and the half-year liquidity assessment [1] - The PBOC's provision of medium-term funding support reflects its commitment to nurturing the market during this period [1]

Domestic News - The Ministry of Commerce responded to new restrictions imposed by the U.S. on China, stating that if the U.S. continues to harm China's interests, China will take strong measures to protect its legitimate rights and interests [2] International News - The U.S. has shown flexibility in reducing additional reciprocal tariffs on Japan, while negotiations between the U.S. and India may lead to a temporary agreement on tariff reductions and market access [3] - Spot silver has surpassed $36 per ounce for the first time since February 2012 [3] - The U.S. trade deficit has sharply decreased by 55.5% to $61.6 billion due to a significant drop in imports caused by Trump's tariffs [3] - The European Central Bank's interest rate statement maintains its current stance on future rate paths, with Lagarde suggesting the end of the rate-cutting cycle; the market no longer fully prices in a 25 basis point cut within the year [3]