Core Viewpoint - The article discusses the implications of the People's Bank of China's decision to cancel the freezing of pledged bonds in the context of bond repurchase agreements, highlighting potential impacts on the bond market and monetary policy operations [3][6][7]. Group 1: Regulatory Changes - The central bank's decision aims to facilitate open market operations involving government bonds and promote a higher level of openness in the bond market [3]. - The cancellation of the freezing of pledged bonds may significantly enhance the convenience of the central bank's operations in buying and selling government bonds, although it does not necessarily indicate a strong market rally [6][7]. Group 2: Comparison with International Practices - The current domestic repurchase framework differs from the international GMRA framework, particularly in terms of ownership transfer, collateral usage, and risk management mechanisms [4]. - The new pledged reverse repurchase agreements may align more closely with the GMRA framework, allowing for the re-pledging and trading of bonds while still being bound by repurchase agreements [4][7]. Group 3: Market Implications - The total amount of bonds involved in domestic pledged repurchase agreements could exceed 10 trillion, with a significant portion related to major banks and the central bank's open market operations [5]. - The cancellation of the freezing of pledged bonds is expected to have a neutral impact on the bond market in the short term, with a cautious outlook suggested [6][7].