Following the announcement of the first RRR cut within the year last week, the central bank's actions to boost market liquidity continued. On Tuesday this week, in the absence of a央票 issuance, the central bank also did not conduct any positive repo operations, and all open market operations were suspended for the day. Analysts pointed out that the news of the RRR cut had not quickly improved the recently tight market capital situation. Against this backdrop, the suspension of open market operations on Tuesday could be seen as one of the measures by the central bank to continue supplementing market liquidity. With the official reduction of the reserve requirement ratio this Friday, there is hope for a faster improvement in the capital situation.
All open market operations were fully suspended. Traders indicated that on the 21st, the central bank did not conduct any positive repo operations and also did not issue any央bills, leading to a complete suspension of open market operations.
Wind statistical data showed that the amount of funds expiring in the open market this week was 20 billion yuan. If the central bank continues to suspend operations on Thursday, then this week may see a small net injection of funds. Analysts pointed out that after announcing the RRR cut, the central bank chose to suspend open market operations, highlighting the policy intention to boost market capital and stimulate credit recovery. From the perspective of the total scale of social financing and credit disbursement data in January, market liquidity still urgently needs further supplementation.
More importantly, the interbank market capital situation is currently very tight. Data showed that on the 21st, except for overnight rates, all term pledged repurchase rates were running at high levels above 5%. Among them, the weighted average rates for mainstream overnight and 7-day pledged repurchases were 4.9386% and 5.2509%, respectively. Although the 7-day repurchase rate slightly declined from Monday's 5.3755%, the overnight repurchase rate continued to rise by 0.1266%, reaching a near-month high since January 19th.