Open Market Operations - The central bank conducted a 7-day reverse repurchase operation on November 4, with a fixed rate and quantity tendering, amounting to 117.5 billion yuan at an interest rate of 1.40%, with the same amount being the winning bid [1] - On the same day, 475.3 billion yuan in reverse repos matured, resulting in a net withdrawal of 357.8 billion yuan [1] Funding Conditions - The interbank funding environment remained stable and loose, with overnight repurchase rates slightly rising to around 1.31% [3] - The overnight quotes in the anonymous click (X-repo) system also hovered around 1.3%, with supply exceeding 100 billion yuan [3] - Non-bank institutions' pledging of certificates of deposit and credit bonds for overnight funding maintained rates between 1.42% and 1.43% [3] Interbank Certificates of Deposit - The latest transaction rate for one-year interbank certificates of deposit among major banks was at 1.64%, showing a slight increase from the previous day [7] Government Bonds and Futures - The 30-year main contract for government bonds rose by 0.03%, while the 10-year contract remained unchanged, and the 5-year and 2-year contracts both fell by 0.01% [11] Central Bank Liquidity Measures - In October, the central bank resumed open market transactions of government bonds, with a net injection of 20 billion yuan, and a net injection of 200 billion yuan through medium-term lending facilities [11] - On November 5, the central bank planned to conduct a 700 billion yuan buyout reverse repurchase operation with a term of 3 months (91 days) [11] Local Government Bonds - In the first ten months of the year, local government bonds issued totaled approximately 910.62 billion yuan, a year-on-year increase of about 23%, marking a historical high for the same period [11] - The issuance of local government bonds accelerated significantly in the first half of the year, but showed a downward trend from July onwards, with October's issuance at approximately 56 billion yuan, slightly higher than January's issuance [11] Global Macro Insights - The U.S. Treasury Secretary expects stable and high-speed growth next year without triggering inflation, predicting a decline in inflation and interest rates [14] - The South Korean President stated that trade negotiations with the U.S. have created a fair competitive environment for local automotive and chip industries, indicating an improvement in consumer confidence and economic conditions in South Korea [15]

Core Viewpoint - The People's Bank of China (PBOC) has resumed the operation of government bond trading, which is expected to support the real economy, enhance the coordination of monetary and fiscal policies, and stabilize market expectations [1][2]. Group 1: Government Bond Trading - The PBOC announced a net injection of 20 billion yuan through government bond trading on November 4, indicating the resumption of operations that were paused at the beginning of the year [1][2]. - The resumption of government bond trading comes as the 10-year government bond yield has risen to around 1.8%, creating favorable conditions for this move [2]. - The net buying of government bonds reflects the PBOC's aim to maintain liquidity and stabilize market expectations, while the relatively low scale of 20 billion yuan indicates a cautious approach to avoid excessive market impact [2]. Group 2: Liquidity Operations - On November 5, the PBOC will conduct a 700 billion yuan reverse repurchase operation with a term of 3 months, maintaining liquidity in the banking system [3]. - The upcoming reverse repurchase operation is an equal rollover of the same amount due on November 7, indicating that there is no need for increased liquidity injection at this time [3]. - There is an expectation that the PBOC will also conduct a 6-month reverse repurchase operation later in November, potentially increasing the amount, which would mark the sixth consecutive month of injecting medium-term liquidity into the market [3].

Core Viewpoint - The People's Bank of China (PBOC) has resumed the operation of buying and selling government bonds, with a net injection of 20 billion yuan, signaling support for the real economy and enhancing the coordination of monetary and fiscal policies [1][2]. Group 1: Government Bond Operations - The PBOC's resumption of government bond trading is aimed at supporting the real economy and stabilizing market expectations, following a pause in operations earlier this year due to market imbalances [1][2]. - As of November 4, the PBOC reported a net injection of 20 billion yuan in government bond trading, indicating a shift in policy to enhance liquidity in the banking system [1][2]. - The current 10-year government bond yield has risen to approximately 1.8%, providing a favorable condition for the resumption of bond trading operations [1]. Group 2: Liquidity Management - The PBOC announced a fixed quantity, interest rate bidding, and multi-price method for a 700 billion yuan reverse repurchase operation with a term of three months, aimed at maintaining ample liquidity in the banking system [2]. - The upcoming maturity of 700 billion yuan in three-month reverse repos on November 7 aligns with the PBOC's strategy to maintain liquidity levels without increasing the volume of operations [2]. - There is an expectation for an additional 300 billion yuan six-month reverse repurchase operation in November, indicating a continued injection of medium-term liquidity into the market [3].

Core Points - The People's Bank of China (PBOC) has resumed open market transactions of government bonds for the first time since January 2025, with a net injection of 20 billion yuan in October 2025 [1] - The PBOC's operations in October included a short-term reverse repurchase of 47,453 billion yuan and a net withdrawal of 5,953 billion yuan, indicating a cautious approach to liquidity management [1][2] - Analysts suggest that the PBOC's actions aim to stabilize market expectations and support long-term liquidity in the banking system, which is crucial for economic stability in the upcoming quarters [2][3] Open Market Operations - In October, the PBOC conducted a net injection of 20 billion yuan through government bond transactions, marking a significant policy shift [1] - The short-term reverse repurchase operations totaled 47,453 billion yuan, with a net withdrawal of 5,953 billion yuan, reflecting a balanced approach to liquidity [1][2] - The PBOC plans to conduct a 7,000 billion yuan reverse repurchase operation on November 5, 2025, to maintain ample liquidity in the banking system [2] Market Conditions - The yield on 10-year government bonds has risen to approximately 1.8%, indicating a favorable environment for the resumption of bond transactions [2] - Analysts believe that the current conditions support the PBOC's decision to resume government bond trading, which is expected to enhance liquidity and stabilize economic growth [2][3] - The PBOC is likely to continue using various monetary policy tools, including reverse repos and medium-term lending facilities, to inject liquidity into the market [3]

Core Viewpoint - The People's Bank of China (PBOC) has resumed the operation of buying and selling government bonds, injecting 20 billion yuan into the banking system in October, which is aimed at supporting the real economy and stabilizing market expectations [3][5]. Group 1: Market Operations - In October, the PBOC conducted a net injection of 20 billion yuan through government bond transactions, marking the resumption of operations that had been paused since January 2025 [3][4]. - The resumption of bond trading is seen as a measure to enhance liquidity and support the coordination of monetary and fiscal policies [3][5]. - The current 10-year government bond yield has risen to around 1.8%, indicating favorable conditions for the resumption of bond trading compared to earlier this year [5][6]. Group 2: Liquidity Management - The PBOC's recent actions, including a 700 billion yuan reverse repurchase operation scheduled for November 5, aim to maintain ample liquidity in the banking system [6][7]. - There are significant upcoming maturities, including 700 billion yuan in three-month reverse repos and 9 billion yuan in medium-term lending facilities (MLF), which necessitate continued liquidity support [7][8]. - Analysts expect that the PBOC will likely conduct additional operations to ensure liquidity remains sufficient, especially as year-end pressures increase [7][8]. Group 3: Market Expectations - The low net buying scale of 20 billion yuan reflects the PBOC's cautious approach to avoid rapid declines in interest rates while still providing market support [5][8]. - The overall expectation is that the resumption of bond trading will not lead to significant monetary easing or a drastic drop in interest rates, maintaining a balanced liquidity environment [8].

Group 1: Report Industry Investment Rating There is no information provided in the text about the report industry investment rating. Group 2: Core Viewpoints of the Report - The money market in October was looser than in September, with overall downward movement in money market rates, and the rates basically returning to the historical fluctuation range. The weak credit demand and the central bank's resumption of treasury bond trading alleviated the tightness of the money market in October [2][11][16]. - It is expected that the money market in November will remain stable compared to October. The central bank's resumption of treasury bond trading may have a short - term impact on the money market, but in the long run, it may "crowd out" the quota of other liquidity tools, and the money market rates will return to be priced by regular factors such as the central bank's attitude and fundamental conditions [5][40][48]. Group 3: Summary by Directory 10 - Month Review: Looser than September - **Money Market Rates**: In October, the operating centers of DR001, DR007, and DR014 decreased by 5bp, 4bp, and 5bp respectively compared to the previous period, and those of R001, R007, and R014 also decreased by 5bp, 4bp, and 8bp respectively. The proportion of time that DR001 ran below the policy rate increased by 31 percentage points to 83%, and that of DR007 running below "policy rate + 10bp" rose by 7 percentage points to 72%. The upward deviation of DR007 from the OMO 7 - day rate in October was 6bp, narrowing from 10bp in September [2][11]. - **Return to Historical Fluctuation Range**: After experiencing an unexpected tightening in the first quarter, the money market rates gradually declined in the second quarter and basically returned to the historical fluctuation range in the third quarter. In October, the rates further declined, returning to the historical average level both year - on - year and month - on - month, with the monthly average deviation of DR007 from the policy rate reaching a new low in 2025 and falling into the historical "normal" fluctuation range [13]. - **Reasons for the Decline in Money Market Rates**: In October, the central bank's total capital injection was only 4.7 billion, far less than the average of 253.7 billion in the past five years. The reasons for the decline in money market rates may be the weak credit demand in October (as indicated by the rapid decline of the six - month transfer discount rate of national and joint - stock banks approaching 0%) and the announcement on October 27 by Governor Pan Gongsheng about resuming open - market treasury bond trading, which alleviated the tightness of the money market at the end of the month [3][16]. - **Performance of Interbank Certificates of Deposit (CDs)**: Most inter - bank CD yields declined in October, except for a 1bp increase in the average yield of 3M CDs compared to September. The 1Y CD issuance rates of various banks showed an inverted V - shaped trend in October, rising in the first half of the month and falling significantly after the expectation of resuming treasury bond trading was realized [23]. - **Fund Stratification Pressure**: The spreads between R001 and DR001, and between R007 and DR007 in October were basically the same as in September, and the fund stratification pressure remained at a low level within the year [28]. 11 - Month Outlook: May Remain Stable Compared to October - **Central Bank's Treasury Bond Trading**: In 2024, the central bank net - bought 1 trillion in treasury bonds, including 1.4 trillion in short - term bonds and sold 400 billion in long - term bonds, with a net injection of 1 trillion in liquidity into the market. If calculated based on the proportion of the central bank's short - term bond purchases to the large banks' net purchases in 2024, the central bank may inject nearly 1 trillion in liquidity through treasury bond purchases in the future. In addition, large banks' net purchases of 3 - 5 - year treasury bonds in August and September 2025 may indicate that the central bank may also buy treasury bonds with maturities over 3 years in the future, further increasing the liquidity injection. In October, the central bank net - bought 200 million in treasury bonds, a relatively low scale [4][34]. - **Relationship between MLF, Reverse Repos, and Treasury Bond Trading**: Historically, MLF and reverse repos have mostly shown an inverse relationship. Treasury bond trading may also "crowd out" the scale of other liquidity tools. Although the central bank net - injected 3.7 trillion through treasury bond trading and outright reverse repos from August to December 2024, reverse repos and MLF net - withdrew 2.8905 trillion, and the total injection scale was not high compared to the same period in previous years. The impact of the central bank's resumption of treasury bond trading on the money market may be short - term, and in the long run, the central bank will make "trade - offs" among different liquidity tools [5][37][38]. - **Government Bond Net Financing Pressure**: In November, due to the decline in the maturity scale of treasury bonds, the net financing pressure of government bonds will increase month - on - month. It is estimated that the net financing scale of treasury bonds in November will be about 739.8 billion, and that of local bonds will be about 231.8 billion, with a total net financing scale of about 1.23 trillion, significantly higher than the 528.1 billion in October [41]. - **Excess Reserve Ratio**: In November, fiscal expenditures may support the money market, but the increase in currency issuance and required reserve base will basically offset this support. Considering the maturity of MLF, outright reverse repos, and treasury cash fixed - term deposits in November, the liquidity gap is about 2 trillion. Assuming equal - amount roll - overs of these monetary tools, the estimated excess reserve ratio in November is about 1.08%, which may be the same as in October [44][46]. - **Overall Outlook**: It is expected that the money market in November will remain stable compared to October, with DR001 mostly running below the policy rate and DR007 continuing to run at the 1.5% level [48].

Core Viewpoint - The People's Bank of China (PBOC) has resumed the operation of buying and selling government bonds in the open market, with a net injection of 20 billion yuan, indicating a shift in monetary policy to support the real economy and stabilize market expectations [1][4]. Group 1: Monetary Policy Tools - The PBOC's liquidity injection includes various tools, with a notable net injection of 20 billion yuan from government bond transactions, marking the resumption of operations that were paused earlier this year [1][2]. - The central bank's operations also include a net withdrawal of 24 million yuan from the Standing Lending Facility (SLF) and a net injection of 20 billion yuan from the Medium-term Lending Facility (MLF) [2]. Group 2: Market Conditions - The current 10-year government bond yield is around 1.8%, which has widened the yield curve, indicating favorable conditions for resuming bond transactions [5]. - The overall performance of the bond market is considered stable, which supports the decision to restart government bond trading [5]. Group 3: Economic Signals - The resumption of government bond trading is seen as a signal to stabilize macroeconomic operations for the fourth quarter of this year and the first quarter of next year [5]. - The PBOC's cautious approach is reflected in the relatively low net buying scale of 20 billion yuan, aimed at avoiding excessive influence on market expectations [5]. Group 4: Future Expectations - There is a possibility that the PBOC may increase the scale of net bond purchases in the future to counterbalance the pressure from other monetary tools maturing [7]. - The PBOC plans to conduct a 700 billion yuan reverse repurchase operation to maintain ample liquidity in the banking system, indicating ongoing support for the financial market [6].

Group 1 - The People's Bank of China (PBOC) announced a 700 billion yuan reverse repo operation to maintain liquidity in the banking system, with a term of 3 months (91 days) [1] - This operation is a continuation of the 700 billion yuan reverse repo maturing this month, indicating a rollover of the same amount [1] - Analysts expect the PBOC to conduct another 6-month reverse repo operation later this month, likely with an increased amount, to inject medium-term liquidity into the market for the sixth consecutive month [1] Group 2 - The PBOC is expected to utilize both reverse repos and Medium-term Lending Facility (MLF) tools to continuously inject medium-term liquidity into the market [2] - As of October, the net liquidity injection from various central bank tools included a net injection of 20 billion yuan from open market operations [2][3] - The PBOC's recent actions are aimed at stabilizing liquidity and supporting the bond market, with a cautious approach to avoid rapid declines in interest rates [4]

Core Viewpoint - The People's Bank of China (PBOC) has resumed open market operations for government bonds after a ten-month hiatus, indicating a supportive stance towards liquidity and the bond market [1][3]. Market Operations - In October, the PBOC conducted short-term reverse repos amounting to 47,453 billion yuan, with a net withdrawal of 5,953 billion yuan after a total of 53,406 billion yuan was recalled [1]. - The PBOC executed a buyout reverse repo of 17,000 billion yuan, resulting in a net injection of 4,000 billion yuan after recalling 13,000 billion yuan [1]. - The announcement revealed a net injection of 20 billion yuan from government bond transactions, marking the first such operation since January 2025 [1][3]. Bond Market Performance - As of November 4, short-term government bond yields have risen, with the one-year yield at 1.3350% (up 1.5 basis points) and the ten-year yield at 1.7905% (up 0.1 basis points) [3]. - Analysts suggest that the PBOC's 20 billion yuan net purchase reflects a cautious approach to avoid rapid declines in interest rates while supporting market liquidity [3]. Economic Implications - The resumption of government bond trading is seen as a signal to stabilize macroeconomic conditions for Q4 2025 and Q1 2026, enhancing long-term liquidity support for the banking system [3][6]. - The PBOC plans to conduct a 7,000 billion yuan buyout reverse repo on November 5, with a term of three months, to maintain ample liquidity in the banking system [3][6]. Future Expectations - Analysts anticipate that the PBOC will continue to utilize buyout reverse repos and medium-term lending facilities (MLF) to inject liquidity into the market, while the recent bond trading resumption does not alter expectations for a reserve requirement ratio (RRR) cut in Q4 [6][7]. - The PBOC's policy stance is expected to remain supportive, with potential increases in net bond purchases to counterbalance the maturity of other monetary tools [6][7].

Core Viewpoint - The People's Bank of China (PBOC) will conduct a 700 billion yuan reverse repurchase operation on November 5, 2025, to maintain ample liquidity in the banking system, with a term of 3 months (91 days) [1] Group 1: Reverse Repo Operations - The PBOC's operation on November 5 will be a continuation of the 700 billion yuan 3-month reverse repo that is set to mature in November, indicating a rollover of liquidity [5] - An additional 300 billion yuan 6-month reverse repo is expected to be conducted later in November, suggesting a potential increase in liquidity injection for the sixth consecutive month [5][6] - The PBOC's recent actions reflect a stable yet slightly accommodative monetary policy stance, with a focus on maintaining market liquidity and stabilizing bond market expectations [6] Group 2: Market Expectations and Tools - The PBOC's net purchase of 20 billion yuan in government bonds during October indicates a cautious approach to avoid rapid declines in interest rates while supporting liquidity [5] - The upcoming maturity of 9 billion yuan in Medium-term Lending Facility (MLF) also suggests that the PBOC may continue to use both reverse repos and MLF to inject medium-term liquidity into the market [6] - The introduction of the reverse repo tool in October 2024 has made it a primary instrument for medium to long-term liquidity supply, surpassing MLF in net injection volume this year [6]