Liquidity Overview - The central bank has continuously net withdrawn funds, with a total net withdrawal of CNY 1.8 trillion from March 1-13, including a net withdrawal of CNY 200 billion from 3M reverse repos, the first in 9 months[1][13] - The overnight interest rate (R001) rose to a weekly high of 1.42% before falling back to 1.39% by the end of the week, while the 7-day rate (R007) remained stable around 1.51%[1][12] Market Trends - The interbank deposit pricing management has tightened, leading to an increase in the issuance of certificates of deposit (CDs), with the primary rate approaching 1.55%[2][19] - The upcoming tax period (March 16-20) is expected to cause slight fluctuations in funding rates, with R001 potentially peaking around 1.45% and R007 staying below 1.60%[3][21] Government Debt - The net payment for government bonds from March 9-13 is estimated at CNY 3.063 trillion, slightly above the historical average of CNY 2.608 trillion since 2025[5][36] - The total government bond issuance planned for March 16-20 is CNY 8.572 trillion, with net payments expected to be CNY 2.363 trillion[4][38] Bill Market - As of March 13, the 1M bill rate increased by 7 basis points to 1.60%, while the 3M and 6M rates rose to 1.45% and 1.22%, respectively[6][40] - Major banks turned net buyers of bills, purchasing CNY 290 billion from March 9-12, contrasting with a net sale of CNY 144 billion the previous week[6][41] Interbank Certificates of Deposit - The pressure from maturing CDs is expected to rise significantly, with CNY 11.733 trillion maturing from March 16-20, marking the highest level this year[7][48] - The weighted average issuance period for CDs has decreased to 8.3 months, down from 8.7 months the previous week[7][52]