Group 1 - The People's Bank of China conducted a 454.5 billion yuan 7-day reverse repurchase operation at an interest rate of 1.40%, maintaining the previous rate, resulting in a net withdrawal of 375.5 billion yuan due to 830 billion yuan of reverse repos maturing on the same day [1] - The Shanghai Interbank Offered Rate (Shibor) for 7-day and 14-day tenors significantly declined to around 1.5%, with overnight Shibor dropping by 6.10 basis points to 1.4100%, 7-day Shibor down by 10.20 basis points to 1.5150%, and 14-day Shibor down by 16.00 basis points to 1.5790% [1][2] - In the interbank pledged repo market, short-term funding prices fell across the board, with R007 transaction volume rising to 13%. The weighted average rates for DR001 and R001 decreased by 6.9 basis points and 10.3 basis points, respectively, while DR007 and R007 rates fell by 11.5 basis points and 11.0 basis points [6] Group 2 - The funding environment on June 3 was characterized by a loose stance, with overnight rates stabilizing around 1.55% and 7-day repo rates also falling to approximately 1.55%. By the end of the day, some major banks offered overnight rates as low as 1.45% [10] - On the interbank certificate of deposit front, 19 certificates were issued on June 3, with a total issuance amount of 3.67 billion yuan. The secondary market saw a relatively quiet trading day, with yields rising compared to the pre-holiday period [11] - The People's Bank of China reported that during the Dragon Boat Festival holiday, UnionPay and NetUnion processed 14.05 billion transactions worth 4.8 trillion yuan, marking a year-on-year increase of 13% and 3.4%, respectively [13]

Core Viewpoint - The People's Bank of China has lowered the interest rates for various terms of the Standing Lending Facility by 0.1%, effective from May 8 [1] Summary by Category Interest Rate Changes - The overnight interest rate is now set at 2.25% [2] - The 7-day interest rate is now set at 2.40% [2] - The 1-month interest rate is now set at 2.75% [2]

Group 1 - The People's Bank of China conducted a 7-day reverse repurchase operation of 405 billion yuan at an interest rate of 1.5%, resulting in a net withdrawal of 682 billion yuan due to 1,087 billion yuan of reverse repos maturing on the same day [1] - The Shanghai Interbank Offered Rate (Shibor) for overnight and 7-day terms decreased by 5.80 basis points and 5.50 basis points, respectively, reporting at 1.7020% and 1.7070% [1] - In the interbank pledged repo market, short-term funding prices fell to around 1.7%, with overnight and 7-day weighted average rates decreasing by 7.6 basis points and 9.8 basis points, respectively [4] Group 2 - The trading environment showed a balanced funding situation, with overnight and 7-day funding transactions fluctuating between 1.73% and 1.75% during the morning session [9] - By the afternoon, the funding supply increased, leading to a decrease in transaction prices, with overnight funding dropping to around 1.65% [9] - A total of 22 interbank certificates of deposit were issued on May 6, with an actual issuance amount of 75.04 billion yuan [9] Group 3 - The People's Bank of China reported that in April 2025, the balance of collateralized supplementary loans from major state-owned banks remained stable at 2,063.9 billion yuan [13] - During the "May Day" holiday in 2025, UnionPay and NetUnion processed 23.439 billion payment transactions amounting to 7.64 trillion yuan, marking a year-on-year increase of 20.49% and 3.21%, respectively [14]

Group 1: Market Operations - The central bank conducted a 382 billion yuan 7-day reverse repurchase operation on March 4, with an operation rate of 1.5%. On the same day, 318.5 billion yuan of reverse repos matured, resulting in a net withdrawal of 280.3 billion yuan [2][3]. - The central bank's recent operations indicate a net withdrawal of funds for two consecutive days in March, which does not hinder the overall liquidity in the market [3]. Group 2: Interest Rates and Bonds - The latest one-year interbank certificates of deposit traded around 1.99%, showing little change from the previous day [5]. - Major interbank bond yields initially declined but then fluctuated and turned upward. For instance, the 1-year government bond yield was at 1.4600%, while the 10-year yield was at 1.7175% [7]. - The recent trends in city investment bonds (AAA) across various maturities indicate changes in yield spreads [8]. Group 3: Global Economic Insights - The Reserve Bank of Australia indicated a stronger case for interest rate cuts, expressing concerns over economic downturn risks and the potential for prolonged tight monetary policy. If inflation persists, rates may remain at 4.1% for an extended period or could be increased [11]. Group 4: Bond Market Events - The National People's Congress Standing Committee will strengthen supervision over government debt management. Additionally, work has begun on issuing 2 trillion yuan of replacement bonds by 2025 [13]. - Longfor Group successfully redeemed the "20 Longfor 04" bond, with a total redemption amount of 2.5 billion yuan [13].