Core Viewpoint - The People's Bank of China (PBOC) has conducted a total of 1.2 trillion yuan (approximately 120 billion) in reverse repos in April to maintain ample liquidity in the banking system [1] Group 1: Reverse Repo Operations - In April, the PBOC executed a buyback reverse repo operation amounting to 1.2 trillion yuan, with 700 billion yuan allocated for a 3-month term and 500 billion yuan for a 6-month term [1] - The reverse repo operations were conducted using a fixed quantity, interest rate bidding, and multiple price-level bidding methods [1] - This tool, introduced in October 2024, enhances the liquidity management capabilities for periods within one year, contributing to more refined liquidity management [1] Group 2: Market Operations - On the same day, the PBOC announced that there were no public market operations for government bonds in April [1]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - This week, the inter - bank liquidity presented a pattern of "stable and loose, low - level and low - volatility, and policy support". Seasonal loosening was dominant, and large - scale open - market maturities were the main disturbance, but the loose pattern remained. The central bank actively provided support, and the synergy between fiscal and monetary policies was enhanced. The net lending scale of large - scale banks recovered rapidly, and the supply of liquidity was relatively abundant. The money market rates showed low - level and low - volatility characteristics, approaching a stage low [1]. - The seemingly "unexpected" launch of the repurchase with bond ownership transfer was actually in line with the requirements of "maintaining abundant liquidity in monetary policy" and "synergistic efforts of fiscal and monetary policies". Whether the treasury bond trading operation will be restarted this month is also worth looking forward to. Next week, although there will be more disturbances, the overall money market still has support, but the volatility may increase, and the upward pressure on money market rates is controllable, while the downward space awaits the injection of incremental liquidity [2]. 3. Summary According to the Directory 3.1. Funds Rate Reaches a Stage Low - At the beginning of the month, funds seasonally loosened. Although there were large - scale open - market maturities, the loose pattern of the money market remained. The launch of the 700 - billion - yuan 3 - month repurchase with bond ownership transfer on August 8 showed the central bank's intention to support and the synergy between fiscal and monetary policies. The net lending scale of large - scale banks quickly recovered to over 4 trillion yuan. The primary - market prices of certificates of deposit (CDs) remained stable, and the secondary - market prices declined [11]. - The money market rates fluctuated at a low level throughout the week, possibly reaching a stage low. DR001 approached 1.3%. After the launch of the repurchase with bond ownership transfer on August 8, the money market rates declined further, and the fluctuation range narrowed significantly compared with the previous week [12]. - The seemingly "unexpected" launch of the repurchase with bond ownership transfer was in line with policy requirements. It is a quantity - based monetary policy tool, and its signal significance lies more in the operation scale than in the operation price. Whether the treasury bond trading operation will be restarted this month is worth anticipating [21][23]. - Although there may be resonance of disturbances in the money market in mid - August, with the central bank's pre - emptive support and the possible marginal mitigation of tax payment pressure, the fluctuations will be more controllable. The money market rates may have reached a stage low, and further downward movement depends on the injection of incremental liquidity. How the central bank operates and whether the net lending scale of large - scale banks can be maintained are important observation factors [24]. 3.2. Open Market: Next Week's Maturity Scale Drops Slightly but Still Exceeds One Trillion Yuan - From August 4 to August 8, the open - market net injection was 163.5 billion yuan, an increase compared with the previous week. Among them, 7 - day reverse repurchase injections totaled 1.1267 trillion yuan, with maturities of 1.6632 trillion yuan, and 3 - month repurchase with bond ownership transfer injections totaled 700 billion yuan. From August 11 to August 15, the open - market maturities will be 1.1267 trillion yuan [3][31]. - The central bank withdrew the cross - month liquidity, but the stable trend of funds remained. The balance of reverse repurchases continued to decline but was still above the seasonal level. As of August 8, the balance of reverse repurchases was 1.1267 trillion yuan, a decrease of 536.5 billion yuan compared with August 1 [33]. 3.3. Government Bonds: Next Week's Issuance Scale Increases - This week, the net payment of government bonds was 370.6 billion yuan. Next week, the planned issuance of government bonds is 351.4 billion yuan, including 260 billion yuan of treasury bonds and 91.4 billion yuan of local government bonds. The net payment of treasury bonds will be 372.4 billion yuan, and that of local government bonds will be 37.7 billion yuan [42]. 3.4. Excess Reserve Tracking and Forecast - It is predicted that the excess reserve ratio in August 2025 will be about 0.90%, a month - on - month decrease of about 0.07 percentage points and a year - on - year decrease of 0.52 percentage points. It is predicted that the excess reserves at the end of July will be about 3.0668 trillion yuan. From August 4 to August 8, the open - market net injection was 163.5 billion yuan, the net payment of government bonds was 370.6 billion yuan, the predicted fiscal revenue - expenditure gap was - 120 billion yuan, and the reserve requirement was 26.2 billion yuan [50][51]. 3.5. Money Market: DR001 Approaches 1.3% - As of August 8, compared with August 1, DR001 decreased by 0.23 basis points to 1.31%, DR007 increased by 0.09 basis points to 1.43%, R001 decreased by 1.32 basis points to 1.34%, and R007 decreased by 3.26 basis points to 1.45% [53]. - The overnight and 7 - day SHIBOR rates decreased by 5.65 and 8.11 basis points respectively compared with the previous week to 1.31% and 1.44%. The overnight and 7 - day CNH HIBOR rates increased by 8.29 and 5.23 basis points respectively compared with the previous week to 1.22% and 1.45% [58]. - The weekly average rates of FR007S1Y and FR007S5Y decreased by 0.98 and 2.23 basis points respectively compared with the previous week to 1.52% and 1.57%. The weekly average rates of six - month national - share transfer discount and six - month city - commercial transfer discount increased by 0.1 percentage points respectively compared with the previous week to 0.68% and 0.79% [61]. - The average daily trading volume of inter - bank pledged repurchase was 8.1091 trillion yuan, an increase of 1.3925 trillion yuan compared with the period from July 28 to August 1. The average daily trading volume of the Shanghai Stock Exchange's new pledged national debt repurchase was 2.186 trillion yuan, an increase of 2.97 billion yuan compared with the period from July 28 to August 1 [63]. 3.6. Certificates of Deposit 3.6.1. Primary Market: Next Week's Maturity Scale Approaches One Trillion Yuan - From August 4 to August 8, the total issuance of CDs was 774.7 billion yuan, and the net financing was 190.9 billion yuan, an increase in both issuance scale and net financing compared with the previous week. By issuer, city - commercial banks had the highest issuance scale and net financing. By maturity, 6 - month CDs had the highest issuance scale, and 1 - month CDs had the highest net financing [73]. - The weighted average issuance term of CDs this week was 6.4 months, longer than the previous week's 5.86 months. Among them, the weighted average issuance terms of state - owned banks, joint - stock banks, city - commercial banks, and rural commercial banks were 6.5, 7.4, 6.2, and 6.5 months respectively, with changes of 1.07, 0.69, 0.59, and - 0.08 months compared with the previous week [77]. - In terms of issuance success rate, joint - stock banks had the highest rate. By maturity, 1 - month CDs had the highest issuance success rate. By credit rating, AA - rated CDs had the highest issuance success rate [79]. - Next week, the maturity scale of CDs will be 905 billion yuan, an increase compared with this week. The maturities are mainly concentrated in national - share banks and city - commercial banks, and the terms are mainly concentrated in 3 - month, 6 - month, and 1 - year [83][84]. 3.6.2. Secondary Market: Yields Decline - After the month - end, the seasonal loosening of funds and the large - scale launch of repurchase with bond ownership transfer led to a continuous decline in the secondary - market yields of CDs. The yields of CDs of all maturities and ratings decreased [95][96].

Core Viewpoint - The People's Bank of China (PBOC) is taking measures to ensure ample liquidity in the banking system by conducting a 400 billion yuan reverse repurchase operation on June 16, with a term of 6 months [1] Group 1: Reverse Repo Operations - On June 6, the PBOC conducted a 1 trillion yuan reverse repurchase operation with a term of 3 months [1] - A total of 1.2 trillion yuan in reverse repos will mature throughout June, leading to a net liquidity injection for the month after the two operations [1] - The reverse repo tool was introduced in October 2024 to enhance liquidity management and cross-period adjustment capabilities for terms under one year [1] Group 2: Market Conditions - June is a critical period for liquidity assessment due to the half-year end, coupled with a large number of interbank certificates maturing [1] - Financial institutions are expected to have a high demand for liquidity throughout June, prompting the PBOC to provide mid-term funding support in advance [1]

Core Viewpoint - The People's Bank of China (PBOC) announced a 700 billion yuan three-month reverse repurchase operation to maintain liquidity in the banking system, indicating a proactive approach to manage liquidity amid fiscal tax peaks and potential quarter-end pressures [1][2][3]. Group 1: Reverse Repo Operations - The PBOC will conduct a 700 billion yuan reverse repurchase operation on August 8, with a three-month term, to ensure ample liquidity in the banking system [1]. - This operation is strategically timed to cover the fiscal tax peak in August and the quarter-end assessment period at the end of September, reflecting the central bank's liquidity management strategy [2][3]. - Analysts expect a second reverse repo operation in August, considering the upcoming maturity of 4 billion yuan in three-month and 5 billion yuan in six-month reverse repos, totaling 9 billion yuan [3][4]. Group 2: Liquidity Management - The central bank is likely to continue using various monetary policy tools, including MLF and reverse repos, to stabilize market expectations and promote credit expansion amid a slowing economic growth backdrop [5][6]. - There is a consensus among analysts that the PBOC may implement further reverse repo operations to address liquidity needs related to government bond issuances and to maintain a stable liquidity environment [4][5]. - The PBOC's approach is characterized by a focus on medium-term liquidity adjustments, with expectations of potential reserve requirement ratio (RRR) cuts to inject long-term liquidity into the market [6].

Group 1 - The People's Bank of China (PBOC) will conduct a 700 billion yuan reverse repurchase operation on August 8, 2025, to maintain liquidity in the banking system [1] - The operation will have a term of 3 months (91 days) and is part of a broader strategy to ensure sufficient liquidity amid high government bond issuance [2] - Analysts expect that the total operation amount for August will exceed the 900 billion yuan of maturing reverse repos, indicating potential further liquidity injections [1][2] Group 2 - In July 2025, the PBOC conducted 1.4 trillion yuan in reverse repos, resulting in a net liquidity injection of 200 billion yuan [3] - The cumulative issuance of reverse repos reached 11.3 trillion yuan by the end of July, with 4.8 trillion yuan remaining outstanding [3] - The introduction of the buyout reverse repo tool is seen as a significant enhancement to China's monetary policy toolkit, potentially reducing the reliance on Medium-term Lending Facility (MLF) for liquidity management [3]

Group 1 - The People's Bank of China (PBOC) announced a 700 billion yuan reverse repo operation with a 3-month term to maintain liquidity in the banking system [1] - In August, there are significant maturities including 400 billion yuan for 3-month and 500 billion yuan for 6-month reverse repos, along with 300 billion yuan in Medium-term Lending Facility (MLF) [2] - The PBOC aims to alleviate concerns over liquidity fluctuations in August by announcing reverse repo operations at the beginning of the month, ensuring overall liquidity remains ample throughout the month [3] Group 2 - Analysts expect the PBOC to conduct another 6-month reverse repo operation in August, with the total operation scale likely exceeding the maturity scale for the month [3] - Since March, the PBOC has maintained an increase in MLF operations, with expectations for further MLF increases in August to provide stability for financial institutions [3] - The PBOC's 2025 work meeting emphasized the continuation of a moderately accommodative monetary policy, utilizing various tools to keep liquidity abundant [3]

Core Viewpoint - The People's Bank of China (PBOC) will conduct a 700 billion yuan buyout reverse repurchase operation on August 8, 2025, to maintain ample liquidity in the banking system, with a term of 3 months (91 days) [2][4]. Group 1: Reverse Repo Operations - The PBOC's operation will involve a fixed amount and interest rate bidding, with multiple price levels for the reverse repo [2][4]. - In August, there are 4 billion yuan of 3-month and 5 billion yuan of 6-month reverse repos maturing, indicating a potential for further operations [3][4]. - Analysts expect that the total operation amount for both maturities in August will exceed 900 billion yuan [4]. Group 2: Monetary Policy Outlook - The PBOC is likely to continue injecting medium-term liquidity through MLF and reverse repos, especially during a peak period of government bond issuance [4][5]. - There is an indication that the market liquidity will not continue to tighten as seen in late July, and the sustainability of rising market rates is under observation [5]. - The PBOC aims to implement a moderately loose monetary policy, utilizing various tools to ensure liquidity remains ample and to guide financial institutions in maintaining reasonable credit growth [5][6]. Group 3: Buyout Reverse Repo Tool - The buyout reverse repo tool was introduced in October 2024, enhancing the PBOC's monetary policy toolkit [5][6]. - As of the end of July, the cumulative issuance of buyout reverse repos reached 11.3 trillion yuan, with 6.5 trillion yuan maturing and a remaining balance of 4.8 trillion yuan [6]. - Compared to traditional pledged repos, buyout reverse repos effectively alleviate liquidity pressure on financial institutions and enhance overall market liquidity [6].

Group 1 - The People's Bank of China (PBOC) shifted from net withdrawal to net injection of liquidity in late July, increasing short-term liquidity provision [1] - From July 21 to July 24, the PBOC conducted net withdrawals of 55.5 billion, 127.7 billion, 369.6 billion, and 119.5 billion yuan, followed by a net injection of 601.8 billion yuan on July 25 after conducting 789.3 billion yuan reverse repos [1] - The MLF (Medium-term Lending Facility) operations in July included a total injection of 100 billion yuan, marking the fifth consecutive month of increased MLF operations [1] Group 2 - In July, the PBOC conducted a total of 1.4 trillion yuan in reverse repos, achieving a net injection of 200 billion yuan, which effectively met medium-term liquidity needs [2] - The overall net financing scale for government bonds is expected to reach 1.5 to 1.6 trillion yuan monthly from August to September, increasing the demand for stable funding from banks [3] - The PBOC is likely to continue using OMO, MLF, and reverse repos to manage liquidity, with potential for government bond purchases and reserve requirement ratio cuts to inject liquidity [3]

Group 1: Report Industry Investment Rating - Not provided in the content Group 2: Report's Core View - The report focuses on the history, current situation, and future prospects of China's central bank's treasury bond trading. It analyzes the operations and impacts of treasury bond trading in 2024 and 2025, draws lessons from overseas central banks' bond - buying practices, and discusses the future evolution of China's treasury bond trading tool [9] Group 3: Summary by Related Catalogs 1. Treasury Bond Trading History Review - **Before 2024**: The central bank mainly participated in treasury bond trading through repurchase agreements to inject short - term liquidity. It rarely directly bought treasury bonds, and the few purchases were mainly to support special treasury bond issuance [10] - **In 2024**: The central bank started to include treasury bond trading in open - market operations. It conducted "buy - short and sell - long" operations, with a net purchase of 100 billion yuan in August. The operations aimed at liquidity management and curve regulation [19][20] - **In the first half of 2025**: The central bank suspended open - market treasury bond purchases in January. The reasons included controllable government bond supply pressure, the availability of alternative tools, and the need to avoid strong market expectations. In June, market discussions about restarting the operation emerged, but it did not happen [28][32] 2. Overseas Insights on Central Bank Bond - Buying - **Fed's "Scarce Reserves" Framework**: Before 2008, the Fed used this framework. Treasury bond trading was a liquidity management tool, and small - scale trading could affect the federal funds rate and other interest rates [39] - **Fed's Bond - Buying with QE and Twist Operations**: From 2008 - 2014, the Fed used large - scale asset - purchase programs and twist operations to influence the yield curve and long - term interest rates [52][53] - **BOJ's YCC Practice**: Since 1999, Japan has implemented QE. In 2016, it introduced YCC to control the yield curve more precisely, aiming to achieve inflation targets and address negative impacts of previous policies [55][57] 3. Outlook on Central Bank Bond - Buying - **Current Situation**: China's central bank holds a relatively low proportion of treasury bonds compared to the Fed and the BOJ. Commercial banks are the main holders of Chinese treasury bonds [63] - **Reasons for the Difference**: The short implementation time of treasury bond trading in China, different tool positioning, and limited treasury bond liquidity are the main reasons [76] - **Future Deduction**: In operation, there may be more expectation management. The tool will focus on liquidity management and curve regulation. The restart window may be around August - September. There will also be optimization of supporting measures [81][83][84]

Group 1 - The People's Bank of China (PBOC) shifted from net withdrawal to net injection of liquidity in late July, increasing short-term liquidity provision [1] - From July 21 to July 24, the PBOC conducted net withdrawals of 55.5 billion, 127.7 billion, 369.6 billion, and 119.5 billion yuan, followed by a net injection of 601.8 billion yuan on July 25 after conducting a reverse repo of 789.3 billion yuan [1] - The MLF (Medium-term Lending Facility) saw a net injection of 100 billion yuan in July, marking the fifth consecutive month of increased MLF operations [1] Group 2 - In July, the PBOC conducted a total of 1.4 trillion yuan in reverse repos, achieving a net injection of 200 billion yuan, which effectively met medium-term liquidity needs [2] - The overall net financing scale for government bonds is expected to reach 1.5 to 1.6 trillion yuan per month from August to September, increasing the demand for stable funding from banks [3] - The PBOC is likely to continue using liquidity management tools such as OMO, MLF, and reverse repos to stabilize the market, with potential for government bond purchases and reserve requirement ratio cuts [3]