Core Viewpoint - The recent auction of the 2025 Central Treasury Cash Management deposits indicates a slight decrease in interest rates, reflecting a reasonable liquidity level in the banking system [1][3]. Group 1: Auction Details - On November 24, the Ministry of Finance and the People's Bank of China conducted an auction for the 2025 Central Treasury Cash Management deposits, with a total bid amount of 120 billion yuan and an interest rate of 1.73%, down 3 basis points from the previous rate of 1.76% [1]. - This auction marks the 12th operation of the year, covering various terms including 1-month, 2-month, and 3-month deposits, with recent operations showing a gradual decline in interest rates [3]. Group 2: Market Liquidity and Interest Rate Trends - The decline in treasury deposit rates suggests a reduced demand for these funds by commercial banks, indicating that the overall liquidity in the banking system is adequate [3]. - In contrast, the interbank market rates, as indicated by the Shanghai Interbank Offered Rate (SHIBOR), have shown a slight increase, with various tenors rising, particularly as month-end pressures increase [3][4]. Group 3: Monetary Policy and Future Outlook - The People's Bank of China has been actively injecting liquidity through various monetary tools, including a recent 338.7 billion yuan reverse repurchase operation, to support short-term liquidity in the market [4]. - The downward trend in the 1-month treasury deposit rate is expected to lower short-term funding costs for commercial banks, although the scale of this operation is limited and serves more as a signal [5]. - Future expectations suggest that the 1-month treasury deposit rate may remain stable, as the People's Bank of China maintains a consistent monetary policy stance despite seasonal tightening pressures at year-end [5][6].