Monetary Policy and Economic Support - The central bank has implemented a moderately loose monetary policy, enhancing counter-cyclical adjustments and introducing a package of financial support measures, which have shown significant effects in supporting the real economy [1][2] - The People's Bank of China (PBOC) will continue to implement a moderately loose monetary policy, closely monitoring the transmission and actual effects of previously implemented policies to better support domestic demand and stabilize social expectations [1][2] Liquidity Management - In the first half of the year, the central bank's liquidity management became more refined, with a net injection of 36,863 billion yuan through various tools, including reverse repos and medium-term lending facilities (MLF) [2][3] - The weighted average of overnight repo rates and pledged repo rates increased slightly, indicating a rise in the central tendency of funding rates [3] Bond Market Performance - The bond market saw a total issuance of 27.1 trillion yuan in bonds, a year-on-year increase of 24.1%, with net financing reaching 10.5 trillion yuan, reflecting strong policy support [4] - The issuance of special bonds has increased, particularly in infrastructure investment, which is crucial for economic growth [4] Yield Curve and Interest Rates - The yield curve for government bonds flattened, with varying changes in yields across different maturities, indicating a complex market response [5][6] - The average issuance rate for corporate credit bonds decreased by 32 basis points year-on-year, contributing to lower financing costs for the real economy [4] Interest Rate Swaps - The interest rate swap curve shifted upward, with significant increases in swap prices for various maturities, reflecting market adjustments [7] - The trading volume of interest rate swaps increased, with a notable rise in daily average transactions, indicating heightened market activity [7]