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Market Chatter: China Local Government Bond Issuances Reach Quota at End of October
China Bond Issuances Reach 7.6 Trillion Yuan in September
The central bank has once again introduced a new liquidity management tool, suitable for the habits of overseas investors, which can better hedge the concentrated maturity of MLF by the end of the year.
1. This is also a new tool launched by the central bank after temporary reverse repurchase and bond trading since the beginning of this year; 2. The term of buy-back repurchase does not exceed 1 year, which can further enrich the liquidity management tools and better hedge the concentrated maturity of MLF before the end of the year; 3. Overseas investors are more accustomed to the buy-back repurchase commonly used internationally.
Bond market closing | Many large banks lowered deposit rates today, equity performance suppressed the bond market, with long-term interest rates rising by about 2 basis points.
Pan Gongsheng, Governor of the People's Bank of China, stated that promoting a reasonable rise in prices will be an important consideration, with a greater emphasis on the role of interest rates and other price-based regulatory tools.
Bond market closing | The central bank and the Ministry of Finance exchanged views on the operation of the bond market, the sentiment of treasury bonds warmed up, and the 30-year national bond interest rate fell more than 4 basis points.
The stock market is pulling back, with long-term bond bullish sentiment being released, yields significantly down, but the short end may be affected by precautionary redemptions, with political and financial bonds within 2 years seeing a sharp increase.
Yield approaching key levels, increased necessity of central bank buying and selling government bonds.
The 10-year government bond yield has reached 2.1191%, approaching the key level of 2.1%; Experts point out that at the current moment, facing the low yield of the bond market, it is necessary for the central bank to conduct government bond transactions.
