Bond Market Overview //1, Open Market OperationThe central bank launched a 7-day reverse repurchase operation of 100 billion yuan in the form of interest rate bidding on June 27, and the winning interest rate was 1.8%. Wind data shows that 20 billion yuan of reverse repurchase expired on the same day, so a net investment of 80 billion yuan in a single day.
(*Data source: Wind-Central Bank Dynamic PBOC)
2. The capital side is about to cross the month, and the central bank's open market will turn to net investment on Thursday, and the overall feeling of funds in the interbank market will be similar to that of the previous day, and the overnight repo weighted rate of depository institutions will drop significantly.
Overseas, the latest U.S. overnight financing guarantee rate is 5.33%.
（IMM）
(*Data source: Wind-International Monetary Fund Sentiment Index, Capital Composite Screen)
3. Interbank certificates of deposit
In terms of long-term funds, the latest transaction volume of one-year interbank certificates of deposit of state-owned and major joint-stock banks fell to about 1.976%.
(*Source: Wind-Interbank Certificate of Deposit-Issuance Results)
4. Most of the yields of major interbank interest rate bonds have declined
(*Source: Wind-Transaction Statistics BMW)
5. Recent trend and data of interest rate spreads of various maturities of urban investment bonds (AAA).
(*Data source: Wind-Spread Analysis) 6. Treasury bond futures collectively closed higher
- The main 30-year contract rose 0.46%, continuing to hit a new closing high.
- The main 10-year contract rose 0.15%, brushing another record high during the session.
- The main 5-year contract rose 0.09%.
- The main 2-year contract rose 0.03%, the highest since the end of May 2020.
(*Source: Wind-Treasury Futures)
News //
1. The Political Bureau of the Central Committee of the Communist Party of China held a meeting to study the issue of further deepening reform in an all-round way and promoting Chinese-style modernization. The meeting decided that the Third Plenary Session of the 20th Central Committee of the Communist Party of China will be held in Beijing from 15 to 18 July.
2. National Bureau of Statistics: From January to May, the profits of industrial enterprises above designated size increased by 3.4% year-on-year, continuing the growth trend since the beginning of the year; From the perspective of gross profit calculated by deducting operating costs from operating income, the growth rate of gross profit of enterprises accelerated by 0.8 percentage points from January to April, accelerating for two consecutive months, and the fundamentals of industrial enterprises continued to improve.
3. The Beijing Securities Regulatory Bureau launched a pilot project for the supervision of securities private investment fund managers in Beijing. The first batch of pilot lists includes 20 private equity fund managers such as long-selling, quantitative, and bond-based.
Global Macro //
1. ECB Governing Council member Kazmir: It is expected that the ECB interest rate will remain stable in the summer; It is believed that one more rate cut can be expected this year.
2. Bank of Japan: As of the end of March, Japan's household assets reached a record 2,199 trillion yen, up 7.1% year-on-year, driven by rising stock prices.
Bond Events //
1. Sino-Ocean China: It has not yet raised the full amount of funds for the repayment of 7 bonds, and is making every effort to promote a major asset transaction
2. Shimao shares: 0.35% of the principal of the second phase of "H19 Shimao 3" will be redeemed on June 28
3. Full moon of Shanghai's new property market: The transaction volume of second-hand houses in June is expected to hit a new high in the past three years
4. A number of banks in Beijing have implemented the new real estate policy
Negative Bond Events of the Week:
(*Source: Wind-Negative Bond Events)
The risk of non-standard assets of urban investment this month
(*Data source: Wind-Risk Monitoring RISK)
Upcoming Programs //
At 3 p.m. next Monday (7/1), Bank of Shanghai would like to invite Fu Qiang, equity partner of Dentons Shanghai Office, to bring you "Law Firms on Internal Control: Interpretation of the Paid-in Obligation Requirements under the New Company Law" of "In-depth Discussion on the Bond Market".