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The Central Bank Will Be Forced To Repurchase Hundreds Of Millions Of Dollars In The Cold Of &Nbsp, And The Interest Rate Is Expected To Rise Again This Week Or Next Week.

2011/6/8 14:52:00 20

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Repurchase And Increase Of Interest Rate For Cold Ticket

Every reporter He Qilin from Shanghai tightening policy did not land in the long holiday of the Dragon Boat Festival, but the market tightening expectations are still strong.

In the face of the largest single week Maturity Fund in June, two days after the suspension, the 28 day repo operation in the open market took on the task of recycling liquidity again in the scale of 100 billion.

At the same time, the yield of 1 - year central issue is not recognized by the market, resulting in its blocked issuance, which makes it difficult for the rate hike to disappear.

Insiders pointed out that the CPI growth in May may be a new high, making the central bank raise interest rate expectations before and after next week's economic data announcement.

Billion repo assistance

Withdrawal from circulation

The announcement shows that the central bank issued a 2 billion yuan 1 year central bank vote on Tuesday (June 7th), which was further reduced compared with last week's 3 billion yuan.

Meanwhile, the 28 day repo operation at the same time reached a two month high of 100 billion yuan, with a flat interest rate of 2.60%.

Insiders said that at present, the interest rate level of the first tier market of the 1 - year central bank is not satisfactory, so the demand is reduced, and due to the sharp increase in the expiry of the funds in the open market this week, the 28 day repo operation is correspondingly heavy to hedge.

A Shanghai trader told the daily economic news that the central bank relied heavily on the positive.

Buy back operation

It is to replace the central bank's votes to hedge the expired funds in the open market.

"The funds expire this week are very large, and the proportion of repurchase expires is large."

Wind information statistics show that this week (June 6th ~6 12) will have 152 billion yuan repurchase and 74 billion yuan central bank tickets expired, a total of 226 billion yuan, the largest single week maturity level of funds in June, and increased by more than 80% over last week's 122 billion yuan.

"Now take 1 years.

Central bank ticket

There are few institutions, mainly because yields are hardly attractive.

The traders pointed out.

The central bank's announcement shows that the yield of 1 - year central bank votes on Tuesday has been stable at 3.3058% for ninth consecutive times.

Insiders pointed out that the issuance rate of 1 - year central bank votes was not recognized by the market, resulting in its blocked issuance, which made it difficult to reduce interest rate expectations.

Data show that the central bank's open market has invested 207 billion yuan for three consecutive weeks, of which 81 billion yuan was invested last week.

At the same time, due to this week's demand declaration has not been launched, the 3 - year central bank ticket is likely to be suspended this week.

"The 3 year varieties are not issued, and the strength of the central bank's return is very limited. The 91 day repo operation on Thursday may also be heavy."

The liquidity of the banking system has tightened, and the central bank has been buying large sums of money to buy back the funds.

It is reported that due to the tight liquidity of the banking system, some banks failed to enter accounts before closing the market, and the interbank market temporarily extended the paction time on Tuesday.

Data show that in January 24th this year, due to liquidity constraints, the central bank and some financial institutions carried out reverse repurchase operations, in order to guarantee lending, the inter-bank market also temporarily extended the paction time.

Wind data show that the price of money in interbank money markets is mixed on Tuesday.

Money market index interest rate - 7 day pledge repo weighted interest rate closed 3.2357%, down 23 basis points compared with the previous trading day, overnight varieties reported 3.0302%, up nearly 50 basis points compared with the previous trading day.

Market traders told the daily economic news that the trend of the price of funds on Tuesday reflected exactly the recent financial situation.

"This week's open market has a large amount of funds due to maturity, which is conducive to loose funds."

A large institutional researcher pointed out that on the other hand, the interest rate hike in the Dragon Boat Festival is expected to be lost. The expected market tightening is still strong before May data release, which will bring great pressure to the assets.

"Agencies generally believe that interest rates will be raised immediately, even if the Dragon Boat Festival holidays do not increase, this week or next week is very likely, so they are more cautious."

A big bond trader pointed out.

In the spot market, due to prudent institutions and slightly tight funds, spot cash pactions are slack.

Judging from the price of treasury bonds, the 38 treasury bonds traded on Tuesday rose by 24 and fell 14, and financial bonds remained stable.

In the bill market, the tightening expectations of many bills increased, and the interest rate was posted up on Tuesday.

ABC's latest report points out that although the rate hike in the Dragon Boat Festival is expected to fail, the increase in the consumer price index (CPI) in May may be another record high.