Core Viewpoint - The People's Bank of China (PBOC) is maintaining a supportive monetary policy stance by continuously injecting liquidity into the banking system, as evidenced by the recent MLF operations and reverse repos, aimed at stabilizing market expectations and supporting government bond issuance [1][2][3]. Group 1: MLF Operations - On September 25, the PBOC announced a 600 billion yuan Medium-term Lending Facility (MLF) operation, marking the seventh consecutive month of increased MLF issuance [1]. - In September, the PBOC conducted two reverse repo operations, resulting in a total net liquidity injection of 300 billion yuan, maintaining the same scale as August [2]. - The MLF operations have shifted to a multi-price bidding mechanism, allowing financial institutions to better manage their liquidity needs and enabling the PBOC to monitor liquidity conditions more effectively [3]. Group 2: Monetary Policy Coordination - The PBOC's actions are seen as a coordinated effort with fiscal policy, particularly during a peak period for government bond issuance, to ensure smooth market operations [2]. - Analysts expect that the PBOC will continue to utilize various monetary policy tools, including MLF and reverse repos, to inject liquidity into the market, with potential for further quantitative easing in the fourth quarter [3]. - There is an increasing market demand for the PBOC to resume government bond trading operations, which could provide more flexible and effective monetary easing compared to monthly reverse repo operations [3].