Core Viewpoint - The People's Bank of China (PBOC) conducted a 7-day reverse repurchase operation of 525.9 billion yuan at an interest rate of 1.40%, maintaining the previous rate, resulting in a net injection of 364.7 billion yuan into the market after 161.2 billion yuan of reverse repos matured on the same day [1] Group 1: Monetary Policy Operations - The PBOC executed a total of 20,275 billion yuan in reverse repos and 3,000 billion yuan in Medium-term Lending Facility (MLF) operations during the week, achieving a net injection of 13,672 billion yuan due to 9,603 billion yuan of reverse repos maturing [1] - The Shanghai Interbank Offered Rate (Shibor) showed narrow fluctuations, with the 7-day Shibor slightly declining [1] Group 2: Interbank Repo Market - In the interbank pledged repo market, overnight rates slightly decreased while 7-day and 14-day rates increased. Specifically, the weighted average rate for DR001 fell by 0.2 basis points to 1.3683%, while DR007 and DR014 rose by 1.2 and 1.1 basis points, respectively [4] - The overall funding environment on June 27 was balanced, with significant credit tiering differences observed. The rates for various transactions showed a mix of slight increases and decreases throughout the day [8] Group 3: Interbank Certificates of Deposit - On June 27, 75 interbank certificates of deposit were issued, with a total issuance amount of 135 billion yuan. The trading sentiment for primary certificates was subdued, particularly for 3-month and 6-month maturities [9] - The overall yield for secondary certificates showed a downward trend compared to the previous day's close, with specific yields for different maturities reflecting slight declines [9]

Core Viewpoint - The Swiss National Bank (SNB) President expressed a desire for money market interest rates to be closer to the benchmark rate [1] Group 1 - The SNB is focusing on aligning money market rates with the benchmark to enhance monetary policy effectiveness [1]

Core Viewpoint - The central bank's unprecedented announcement of a large-scale reverse repurchase operation at the beginning of June aims to stabilize market confidence and address liquidity concerns in the interbank certificate of deposit (NCD) market, particularly in light of the significant maturity of NCDs this month [1][2][3]. Group 1: Central Bank Operations - On June 5, the central bank announced a 1 trillion yuan reverse repurchase operation starting June 6, with a term of 3 months, to maintain ample liquidity in the banking system [2]. - This operation is part of a series of reverse repurchase actions that have been ongoing for eight months, aimed at enhancing liquidity management within a year [2][5]. - Analysts believe that the early announcement of this operation is intended to alleviate market anxiety regarding the large NCD maturities, which amount to 4.2 trillion yuan in June, a significant increase from May [2][4]. Group 2: Market Reactions and Trends - Following the central bank's announcement, there are initial signs of a downward trend in NCD issuance rates, with the one-year NCD rate dropping from 1.82% to 1.80% [4]. - The weighted average issuance rate for NCDs was 1.71%, showing a slight increase of 1 basis point compared to the previous period, indicating a stabilization in the banking sector's funding pressures [4][6]. - The upcoming week is critical for observing NCD market performance, with over 1.2 trillion yuan in NCDs maturing, the largest single-week maturity volume on record [8]. Group 3: Future Expectations - Analysts expect that the central bank will continue to use reverse repos and medium-term lending facilities (MLF) as channels for maintaining reasonable liquidity levels [5][10]. - There is a consensus that the central bank's liquidity management will be proactive, especially with the seasonal pressures of government bond issuance and the need for banks to manage their balance sheets effectively [7][9]. - The potential for increased MLF operations in response to maturing reverse repos is anticipated, with a focus on maintaining stability in the liquidity environment [10].

Domestic News - The National Bureau of Statistics reported that the industrial added value above designated size increased by 6.1% year-on-year in April [3] - The urban surveyed unemployment rate nationwide stands at 5.1% [3] - The total retail sales of consumer goods increased by 5.1% year-on-year [3] - In 70 large and medium-sized cities, the sales prices of commercial residential properties remained stable or slightly decreased month-on-month, with the year-on-year decline continuing to narrow [3] International News - The EU will propose to G7 finance ministers to lower the price cap on Russian seaborne oil, potentially setting it at $50 per barrel [5] - The Federal Reserve officials expressed a preference for only one interest rate cut this year, with recent economic data being described as very good [5] - The U.S. Treasury yields have shown a V-shaped recovery after the 30-year Treasury yield broke above 5% and then declined [7]