Core Viewpoint - The 20th Central Committee's Fourth Plenary Session approved the "Suggestions on Formulating the 15th Five-Year Plan for National Economic and Social Development," emphasizing a stable and continuous monetary policy framework that will guide financial market operations during the 15th Five-Year Plan period [1] Monetary Policy Framework - The "scientific and stable" monetary policy aims to balance short-term and long-term goals, economic growth and risk prevention, as well as internal and external factors [1] - The central bank's liquidity toolbox is well-stocked, with a reasonable distribution of terms, allowing for both short-term and long-term liquidity adjustments [2] Liquidity Tools and Mechanisms - The central bank has shifted its focus from quantity targets to interest rate levels, indicating a reduced emphasis on the monetary supply's direct control [2] - Different liquidity tools serve distinct purposes, with reserve requirement ratio (RRR) adjustments being used more cautiously compared to other tools [3] Interest Rate Mechanism - The central bank will adjust the timing of MLF operations to follow LPR announcements, reinforcing the significance of the 7-day reverse repurchase rate as a policy interest rate [3] - The transmission mechanism of monetary policy is structured as "economic growth - policy interest rate - market interest rate," with the 7-day reverse repurchase rate becoming a key determinant for 10-year government bond yields [5] Economic Indicators and Policy Signals - Historical data shows that each round of RRR cuts corresponds with a decline in government bond yields, indicating that RRR adjustments signal policy easing [4] - The frequency of interest rate cuts is lower than that of RRR cuts, suggesting a more cautious approach by the central bank regarding interest rate adjustments [6]

Group 1 - The S&P 500 index increased by 3.52%, indicating a strong performance in the U.S. stock market [6] - The Hang Seng Tech Index rose by 6.18%, reflecting positive sentiment in the technology sector [6] - Major European indices also showed gains, with the Euro Stoxx 50 and the German DAX index increasing by 2.12% and 1.81% respectively [6] Group 2 - U.S. Treasury yields experienced fluctuations, with the 2-year Treasury yield rising by 2.57% [9] - The 10-year Treasury yield also saw an increase of 2.29%, suggesting a shift in investor sentiment [9] - The 30-year Treasury yield rose by 1.50%, indicating a broader trend in long-term interest rates [9]