Core Viewpoint - The People's Bank of China (PBOC) has resumed trading of government bonds, leading to a stable performance in the bond market, with yields showing mixed movements across different maturities [1][3][4]. Market Performance - On November 11, the bond market saw a decline in yields, with the 10-year government bond yield dropping to 1.8040%, down 0.1 basis points from the previous trading day [1][3]. - The 30-year government bond yield increased by 0.6 basis points to 2.1525%, while the 5-year yield decreased by 0.25 basis points to 1.5250% [3]. - The overall bond market has remained stable since the beginning of November, with the PBOC's net purchase of government bonds amounting to 20 billion yuan in October [3][4]. PBOC's Actions and Market Impact - The PBOC's resumption of government bond trading is aimed at supporting year-end fiscal liquidity and enhancing control over the yield curve, with a relatively small net purchase scale of 20 billion yuan [4][5]. - Analysts suggest that the PBOC's actions are not intended to significantly lower interest rates but rather to guide market expectations without causing excessive market reactions [4][5]. Future Outlook - The bond market is expected to experience a range-bound fluctuation, influenced by regulatory policies, capital flows, and spillover effects from the stock market [1][6]. - Investment strategies may focus on leveraging interest rate strategies in a relatively stable funding environment, while investors are advised to remain cautious and attentive to policy developments [6].

Group 1 - The People's Bank of China conducted a 655 billion yuan 7-day reverse repurchase operation on November 5, maintaining the operation rate at 1.40%, resulting in a net withdrawal of 4,922 billion yuan due to 5,577 billion yuan of reverse repos maturing on the same day [1] - The Shanghai Interbank Offered Rate (Shibor) showed minor fluctuations in short-term varieties, with the overnight Shibor remaining unchanged at 1.3150%, the 7-day Shibor rising by 0.80 basis points to 1.4230%, and the 14-day Shibor decreasing by 1.70 basis points to 1.4610% [1][2] - In the interbank pledged repo market, most varieties saw slight increases, with the overnight weighted average rates for DR001 and R001 at 1.3151% and 1.3615%, respectively, while the transaction volumes for these instruments increased by 1,220 billion yuan and 1,638 billion yuan [4] Group 2 - The funding environment on November 5 was characterized by a loose stance, with major banks lending out funds, leading to a stable transaction rate for overnight repos around 1.40%-1.42% [7] - A total of 105 interbank certificates of deposit were issued on November 5, with an actual issuance amount of 1,696.8 billion yuan [7][8] - The trading sentiment for primary certificates of deposit was relatively active, particularly for 6-month and 9-month maturities, while secondary certificates of deposit showed general activity with slight yield declines [8]

Group 1 - The People's Bank of China conducted a 7-day reverse repurchase operation of 164.8 billion yuan at an interest rate of 1.40%, maintaining the previous rate, resulting in a net withdrawal of 244.2 billion yuan due to 409 billion yuan of reverse repos maturing on the same day [1] - For the week, the People's Bank of China executed a total of 673.1 billion yuan in 7-day reverse repos, with a total of 1,021 billion yuan maturing, leading to a cumulative net withdrawal of 347.9 billion yuan [1] - The Shanghai Interbank Offered Rate (Shibor) showed mixed movements, with the overnight Shibor rising by 0.20 basis points to 1.3180%, while the 7-day Shibor fell by 0.40 basis points to 1.4150% [1][2] Group 2 - In the interbank pledged repo market, overnight rates increased while 7-day rates slightly decreased, with the weighted average rates for DR001 and R001 rising by 0.6 basis points and 1.2 basis points, respectively [4] - The trading volume for DR001 and R001 increased by 210.8 billion yuan and 28.1 billion yuan, respectively, while the trading volume for DR007 and R007 decreased by 0.4 billion yuan and 72.5 billion yuan [4] - The overall funding situation in the market remained balanced, with overnight rates around 1.40% and 7-day rates around 1.45% [9] Group 3 - On October 17, a total of 122 interbank certificates of deposit were issued, with an actual issuance amount of 150.38 billion yuan, indicating active trading sentiment [10] - The primary issuance rates for various maturities showed slight increases, with the 3-month national bank stock closing at approximately 1.59%, up about 0.25 basis points from the previous day [10] - The yield curve spread between 1-year and 1-month certificates narrowed by 0.25 basis points, indicating a slight shift in market sentiment [10]

Group 1 - The People's Bank of China conducted a 435 billion yuan reverse repurchase operation with a rate of 1.40%, maintaining the previous level, resulting in a net injection of 435 billion yuan into the market [1] - The Shanghai Interbank Offered Rate (Shibor) for short-term instruments remained stable, with a slight decline in the 7-day Shibor [1][2] - The overnight Shibor increased by 0.10 basis points to 1.3160%, while the 7-day Shibor decreased by 0.90 basis points to 1.4140% [2][3] Group 2 - In the interbank pledged repo market, various rates showed narrow fluctuations, with DR007's transaction share rising to 4.5% [5] - The weighted average rates for DR001 and R001 decreased by 0.0 basis points and 0.2 basis points, respectively, with transaction volumes dropping by 901 billion yuan and 456 billion yuan [5] - The overall funding environment was balanced and slightly loose, with overnight rates declining further after the open market operations [10] Group 3 - As of October 15, 120 interbank certificates of deposit were issued, with an actual issuance volume of 114.59 billion yuan [11] - The trading sentiment for primary certificates was generally average, while secondary certificates showed moderate trading sentiment with yields continuing the upward trend from the previous day [11] - The weighted average interest rates for various maturities showed slight increases compared to the previous day, indicating a tightening of spreads between different maturities [11] Group 4 - The People's Bank of China reported that by the end of September 2025, the total social financing scale was 437.08 trillion yuan, a year-on-year increase of 8.7% [13] - The broad money supply (M2) reached 335.38 trillion yuan, growing by 8.4% year-on-year [13] - The average interest rate for newly issued corporate loans was approximately 3.1%, down about 40 basis points from the previous year, indicating a continued low interest rate environment [13]

Core Viewpoint - The domestic funding market interest rates are showing a pattern of short-term decline and long-term rise ahead of the National Day holiday, with short-term rates weakening due to the release of short-term funding demand, while medium to long-term rates are stabilizing and rising due to overall financing demand recovery [1] Group 1: Interest Rate Trends - As of September 30, the Shanghai Interbank Offered Rate (Shibor) for overnight and 1-week rates were reported at 1.379% and 1.405%, respectively, down by 3.4 and 5.7 basis points from September 23 [1] - The 2-week, 1-month, 3-month, 6-month, 9-month, and 1-year rates were reported at 1.702%, 1.57%, 1.58%, 1.64%, 1.67%, and 1.68%, respectively, with increases of 13.5, 1.9, 1.8, 1, 0.7, and 0.8 basis points from September 23 [1] Group 2: Central Bank Operations - During the National Day holiday, the central bank has a total of 20,633 billion yuan in reverse repos maturing, with 6,000 billion yuan in 14-day reverse repos maturing on October 9 [1] - The central bank is expected to implement significant reverse repo operations to absorb funds during the holiday period [1] Group 3: Future Expectations - It is anticipated that after the holiday, funding rates will continue the trend of short-term decline and long-term rise, as the peak of short-term funding demand has ended, potentially leading to further declines in short-term rates [1] - Increased investment enthusiasm and a recovery in medium to long-term funding demand are expected to result in stable increases in medium to long-term rates [1]

Monetary Policy Operations - The People's Bank of China conducted a 7-day reverse repurchase operation amounting to 181.7 billion yuan at an interest rate of 1.40%, unchanged from previous operations [1] - The overnight and 7-day Shanghai Interbank Offered Rate (Shibor) slightly decreased, while the 14-day Shibor fell by over 10 basis points [1][2] Shibor Rates - As of September 28, the overnight Shibor decreased by 0.70 basis points to 1.3140%, the 7-day Shibor fell by 0.40 basis points to 1.4970%, and the 14-day Shibor dropped by 10.90 basis points to 1.5370% [2] Interbank Repo Market - In the interbank pledged repo market, the 7-day rates increased while the 14-day rates significantly decreased. The weighted average rates for DR001 and R001 fell by 0.6 basis points and 1.2 basis points, respectively, while DR007 and R007 rates rose by 2.4 basis points and 8.4 basis points [4] Market Conditions - On September 28, due to a holiday adjustment, most non-bank institutions were absent, leading to a relaxed funding environment. Overnight repo rates were around 1.45%, while rates for credit and certificates of deposit were between 1.90% and 1.95% [8] - A total of 44 interbank certificates of deposit were issued, with an actual issuance volume of 107.74 billion yuan [8] Secondary Market Activity - Trading sentiment in the secondary market was relatively quiet due to the holiday adjustment, with prices remaining stable compared to the previous trading day. The 1-month national bank stock ended at 1.66%, unchanged from the previous day [9]

Core Points - The People's Bank of China (PBOC) conducted a 7-day reverse repo operation of 165.8 billion yuan at an interest rate of 1.40% and a 14-day reverse repo operation of 600 billion yuan, resulting in a net injection of 411.5 billion yuan into the market [1] - This week, the PBOC has executed a total of 1.5674 trillion yuan in 7-day reverse repos, 900 billion yuan in 14-day reverse repos, and 600 billion yuan in Medium-term Lending Facility (MLF) operations, leading to a net injection of 940.6 billion yuan [1] - The Shanghai Interbank Offered Rate (Shibor) for overnight and 7-day tenors has decreased significantly, while the 14-day tenor has seen a slight increase [1][2] Interest Rate Summary - The overnight Shibor fell by 15.10 basis points to 1.3210% [3] - The 7-day Shibor decreased by 8.30 basis points to 1.5010% [3] - The 14-day Shibor increased by 2.10 basis points to 1.6460% [3] Repo Market Overview - In the repo market, the weighted average rates for overnight and 7-day repos have decreased, while the 14-day repos saw a slight increase [5] - The weighted average rate for overnight repos (DR001) fell by 15.7 basis points to 1.3182%, with a transaction volume decrease of 507.3 billion yuan [5] - The weighted average rate for 7-day repos (R001) decreased by 18.5 basis points to 1.3344%, with a transaction volume decrease of 3.641 trillion yuan [5] Market Conditions - The funding environment was balanced in the morning and slightly loose in the afternoon, with overnight transactions around 1.40%-1.45% [9] - A total of 34 interbank certificates of deposit were issued on September 26, with an actual issuance amount of 52 billion yuan [9][10] Regulatory Developments - The PBOC, along with the China Securities Regulatory Commission and the State Administration of Foreign Exchange, announced support for foreign institutional investors to engage in bond repurchase transactions in the Chinese bond market [12] - The Hong Kong Monetary Authority announced similar support for foreign investors participating in onshore bond repurchase transactions, enhancing liquidity access [12]

Core Viewpoint - Domestic market interest rates are showing a strong trend due to high demand for funds at the end of the quarter, with expectations of a weaker rate next week as short-term funding needs are likely to ease [1] Interest Rate Summary - As of September 25, the Shanghai Interbank Offered Rate (Shibor) overnight rate closed at 1.472%, a decrease of 4.2 basis points from September 18 [1] - The rates for 1-week, 2-week, 1-month, 3-month, 6-month, 9-month, and 1-year periods are reported at 1.584%, 1.625%, 1.564%, 1.574%, 1.635%, 1.669%, and 1.679% respectively, with increases of 5.6, 4.4, 2, 1.8, 0.4, 0.7, and 0.6 basis points compared to September 18 [1] Central Bank Operations - This week, the central bank has 18,268 billion yuan of reverse repos maturing, and has conducted 17,016 billion yuan of reverse repos in the first four working days [1] - The central bank has 300 billion yuan of Medium-term Lending Facility (MLF) maturing and has rolled over 600 billion yuan of MLF, injecting 300 billion yuan of liquidity into the market [1] Future Outlook - The probability of weaker domestic market interest rates next week is high due to the release of short-term funding needs before the holiday and the central bank's liquidity injection through MLF, which helps stabilize medium to long-term rates [1]

Core Viewpoint - The domestic funding market interest rates are experiencing a comprehensive rebound due to government bond issuance, concentrated tax payments, and increased funding demand at the end of the month [1] Group 1: Interest Rate Trends - As of September 10, the Shanghai Interbank Offered Rate (Shibor) for various terms has increased, with overnight, 1-week, 2-week, 1-month, 3-month, 6-month, 9-month, and 1-year rates reported at 1.425%, 1.449%, 1.501%, 1.528%, 1.553%, 1.621%, 1.653%, and 1.663% respectively, showing increases of 10.9, 1.6, 1.5, 1.1, 0.3, 1.1, 0.8, and 0.7 basis points compared to September 3 [1] Group 2: Central Bank Operations - The central bank has 10,684 billion yuan in reverse repos maturing this week and has conducted 7,425 billion yuan in reverse repo operations in the first three working days of the week, indicating a likely increase in reverse repo injections to stabilize funding rates [1] Group 3: Future Expectations - In the short term, funding market interest rates are expected to maintain a strong trend due to the convergence of seasonal funding demands from the end of the quarter and upcoming holidays, with short-term rates likely to continue rising [1] - Overall financing demand is recovering, and mid-to-long-term rates are expected to remain stable with a slight upward trend [1]

Monetary Policy Operations - The People's Bank of China conducted a 7-day reverse repurchase operation of 416.1 billion yuan at an interest rate of 1.40%, unchanged from previous rates, resulting in a net injection of 163.1 billion yuan after 253.0 billion yuan of reverse repos matured on the same day [1][4][10] Interbank Rates - The Shanghai Interbank Offered Rate (Shibor) for overnight loans increased by 0.10 basis points to 1.3160%, while the 7-day Shibor rose by 3.50 basis points to 1.5260% [2][3] - The 14-day Shibor also saw an increase of 2.40 basis points, reaching 1.5500% [2] Repo Market Activity - In the interbank pledged repo market, most rates experienced slight increases, with the R007 and R014 rates inverted, and R007 transaction volume rising to 17.6% [4] - The weighted average rates for DR001 and R001 decreased by 0.1 basis points and increased by 0.4 basis points, respectively, with transaction volumes decreasing significantly [4] Funding Conditions - Throughout the day, the funding environment transitioned from balanced to loose, with overnight rates stabilizing between 1.35% and 1.38% and 7-day rates around 1.53% to 1.55% [10] - By the end of the trading day, overnight rates dropped to a low of 1.30% [10] Interbank Certificates of Deposit - On August 28, 37 interbank certificates of deposit were issued, with a total issuance amount of 64.67 billion yuan [11] Market Sentiment - The sentiment in the secondary market for certificates of deposit was mixed, with long-term yields slightly higher than the previous day, while 1-month yields decreased marginally [12]