Short Term Financial Management Adds To The Burden

According to the data released by the National Bureau of statistics in March 9th, the CPI (consumer price index) increased by 3.2% in February 2012, a sharp decrease of 1.3 percentage points compared with the previous month, the lowest since May 2010.

Analysts believe that the decline in CPI growth will further create a "moderately relaxed" condition for the central bank's monetary policy. With the further easing of market funds and the expected warming in the future, the yield of financial products issued by banks over the next 3 months may be further affected.

Yesterday's CPI in February returned to the drop channel, but lower than the previous market's expected year-on-year growth of 3.5%.

It is worth noting that in February, CPI was lower than the current one-year deposit rate of 3.5%, although this does not mean that the negative interest rate situation for two years has been reversed, but the market sentiment will be improved.

Analysts say that with the gradual slowdown of economic growth, the pressure of price rise may be further weakened in the future, and the trend of inflation will be further established.

Taking into account the slowdown in economic growth, the central bank will continue to maintain a "moderately relaxed" tone in monetary policy and may further reduce the reserve requirement rate in the future.

At the end of 2, when the central bank lowered the deposit reserve ratio, the interbank offered rate continued to fall, and the Shibor of each period decreased to varying degrees, of which 7 days Shibor dropped from 5.49% in February 23rd to 2.93% in March 9th, a drop of nearly 47%, 14 days SHIBOR and 1 months SHIBOR dropped to 41.9% and 29.3% respectively.

In addition, since February, the central bank has launched a total repurchase of 152 billion yuan, with a period of 28 days and 91 days. The repo rate has remained unchanged at 2.8% and 3.16%, indicating that the tight liquidity in the market has eased to a great extent.

Puyi wealth researcher Ye Linfeng believes that the sharp decline in the interest rate of money market will have a greater pressure on the yield of short-term financial products.

According to statistics of Puyi wealth, the average yield of products under the 1 month period issued by banks in January was 4.36%, while the average yield of these products dropped to 4.06% in February, and the yield of such products has dropped to 3.4% since March.

Ye Linfeng said that the longer term products were less affected, but with the further easing of market funds and the expected warming in the future, the yield of financial products issued by banks over the next 3 months may be affected. Investors need to flexibly configure financial products with different maturities according to their own circumstances in order to obtain maximum returns.

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