Yesterday the market was quite interesting, I already wrote about it in the community's review.
Let's share the best parts. As follows:
1. The central mother borrowed securities and sold debts
Today, the central mother announced that she would borrow bonds and sell bonds.
Why today?
Because the liquidity pressure at the end of the month has been lifted, Yang Ma is going to start cleaning up those who are disobedient.
Long-term bond interest rates have risen sharply today!
30-year Treasury futures fell the most during the session by 1.23%, and those who added 10x leverage suffered.
Many people are just fearless and think they can lead the market.
After many warnings from Yang Ma, they turned a blind eye.
In fact, the pricing power of the bond market has never been in the hands of traders.
Yang Ma's operation is called putting a long line to catch a big fish, let me explain it to you:
First, he has been holding back, so that the bond mad bull market has been interpreted to the extreme.
Second, the more extreme it is, the more money Yang Ma can make.
Why, because if you are short at a high level, can the return not be high?
Don't forget, Yang Ma borrowed bonds and sold them on the secondary market.
Isn't this just short selling?
It must be noted that this operation is not only to regulate the long-term interest rate, but also to blatantly tell you: I want to short you!!
Besides, who do you ask to borrow coupons?
Come to think of it, is this another version of refinancing?
The lender is... Hehe...
Third, lock in the interest rate of fiscal bond issuance
Let bond market traders go long like crazy, and the interest rate on long-term bonds will continue to fall.
Who is the happiest?
The Ministry of Finance, of course! The cost of borrowing money is so low that you can wake up smiling when you fall asleep.
After the progress of bond issuance reached more than 50%, Yang Ma began to short.
In fact, this operation is forcing the treasury to speed up the issuance of bonds.
Otherwise, interest rates will get higher and higher.
Is speeding up fiscal efforts a means to boost domestic demand? Let's think about this logic.
I said three times last week that there will be policies to boost demand in the near future.
After this starting gun is fired, we will see more policies to boost domestic demand in the future.
The stock market will benefit from the upcoming policy.
Second, the national team borrowed money to buy shares
Yang Ma borrowed money to sell debts, and the national team borrowed money to buy stocks.
Interesting, isn't it?
I don't need to say more, everyone can understand it.
Like a hedge fund playstyle?
Let's take a look at the time-sharing chart comparison of CSI 300 and 30-year Treasury bond futures.
What do you think?
Isn't that interesting?
Didn't I tell you before?
Pulling up the CSI 300 can not only stimulate domestic demand, but also ease the pressure on the exchange rate.
Today, the 1-year CD rate has only risen to 1.98%
This shows that Yang Ma actually still wants to be relaxed.
But it's going to make the yield curve steep.
On the one hand, it continues to push down short-end interest rates, and on the other hand, it raises long-end interest rates.
As a result, term spreads widen.
Today's 10-year Treasury bond rate - 1-year CD rate = 29.25bp.
The median of this spread was 25BP, which is now more than the median.
After crossing the tipping point, some things change dramatically.
Third, Yang Ma's weapon has been upgraded
Previously, the bond market was so crazy that even a large number of bonds issued by the treasury could not stop it.
Why?
Because the finance department will announce the rhythm of bond issuance in advance, this is called expectation management.
Then the market will be able to prepare in advance.
And Yang Ma has upgraded her weapons now, and he will not announce it to the market in advance if he borrows bonds and sells bonds.
Then you can launch a sniping attack on the bond market bulls at any time.
Wait until the sniping is over to reveal how many bonds he has sold.
This frequency can be on the same day, weekly, or monthly.
As for which frequency to choose, it depends on how he wants to play.
Finally, you can put together a timeline of what has happened recently.
You will find out how such a coincidence!
Is it really a coincidence?
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