Economic Overview - In the first quarter, China's economy achieved a stable start and good performance under more proactive macro policies [1] - The average daily transaction volume in the interbank market decreased, with a total transaction volume of 452 trillion yuan, down 24% quarter-on-quarter and 19% year-on-year [1] Monetary Policy and Market Operations - The People's Bank of China (PBOC) is implementing more proactive macro policies, with potential adjustments to reserve requirement ratios and interest rates to maintain liquidity [1][2] - The net liquidity injection from monetary policy operations in the first quarter was 22,618 billion yuan, with significant reverse repo operations [2] Repo Rates and Market Dynamics - Major repo rates initially increased and then decreased, with the overnight repo rate (DR001) and the overnight pledged repo rate (R001) rising by 34 and 37 basis points respectively to 1.77% and 1.95% [3] - The first quarter saw fluctuations in funding rates due to seasonal factors and liquidity conditions, with DR007 reaching a high of 2.34% [3] Government Bond Issuance and Market Activity - A total of 12.3 trillion yuan in bonds were issued in the first quarter, a 3.5% increase quarter-on-quarter and a 24% increase year-on-year [4] - The issuance of ordinary government bonds was notably high, with the issuance pace reaching about 30% of the annual target, the highest level for the same period in recent years [4][5] Bond Market Performance - Bond yields increased across various maturities, with the 1-year and 10-year government bond yields rising by 45 and 11 basis points respectively [5] - The yield curve for 10-year government bonds showed a fluctuation range of approximately 30 basis points [5] RMB Derivatives Market - The RMB derivatives market saw significant growth, with daily trading volume of interest rate swaps increasing by 33.4% in the first quarter [6] - The average nominal principal amount for RMB interest rate swaps reached 11.1 trillion yuan, with a daily average of 1,876.1 billion yuan, reflecting a 23.2% increase [6]