Bond Market Overview //
1. Open market operations
On July 1, the central bank launched a 7-day reverse repurchase operation of 2 billion yuan in the form of interest rate bidding, and the winning interest rate was 1.8%. Wind data shows that the reverse repurchase of 50 billion yuan expired on the same day, so the net withdrawal of 48 billion yuan in a single day.
(*Data source: Wind-Central Bank Dynamic PBOC)
2. Funds
After the end of the half-year period, the capital was loose, and the main repo rate generally fell significantly.
Overseas, the latest U.S. overnight financing guarantee rate is 5.34%.
（IMM）
(*Data source: Wind-International Monetary Fund Sentiment Index, Capital Composite Screen)
3. Interbank certificates of deposit
The latest second-level trading volume of one-year interbank certificates of deposit of state-owned and major joint-stock banks was around 1.98%, a significant decrease from the previous day.
(*Source: Wind-Interbank Certificate of Deposit-Issuance Results)
4. The yield of major interbank interest rate bonds fell significantly at the beginning of the session and rebounded sharply in the afternoon.
(*Source: Wind-Transaction Statistics BMW)
5. Recent trend and data of interest rate spreads of various maturities of urban investment bonds (AAA).
(*Source: Wind-Spread Analysis)
6. Treasury bond futures closed down across the board
The main 30-year contract fell 1.06%
The main 10-year contract fell 0.37%
The 5-year main contract fell 0.24%
The main 2-year contract fell 0.08%
(*Source: Wind-Treasury Futures)
News //
1. In June, Caixin China's manufacturing PMI recorded 51.8, up 0.1 percentage points from May, higher than the boom and bust line for eight consecutive months, the highest since June 2021, indicating that the expansion of manufacturing production and business activities accelerated.
2. The Information Office of the State Council is scheduled to hold a series of press conferences on the theme of "Promoting High-quality Development" at 10 a.m. on July 5 (Friday), and Jin Zhuanglong, Minister of Industry and Information Technology, will attend the briefing and answer questions from reporters.
3. According to the latest release of the "China Real Estate Index System Price Index Report on 100 Cities (June 2024)", the average price of new residential buildings in 100 cities in June was 16,421 yuan / square meter, up 0.15% month-on-month and 1.5% year-on-year. Driven by the entry of high-quality improvement projects in some cities, the prices of new residential buildings in 100 cities rose structurally month-on-month.
Global Macro //
1. Japan's National Tax Service said that Japan's average land price will rise by 2.3% in 2023, rising for the third consecutive year.
2. The Reserve Bank of India (RBI) and ASEAN countries will create a platform to facilitate cross-border retail, which will be launched by 2026.
3. Vietnam will extend the VAT rate of 8% until the end of 2024.
Bond Events //
1. The central bank announced that in order to maintain the stable operation of the bond market, on the basis of prudent observation and evaluation of the current market situation, it has decided to carry out treasury bond borrowing operations for some primary dealers in the open market in the near future
2. Four bonds, including "H20 Shimao 1", failed to pay interest as agreed
3. Putailai intends to register and issue debt financing instruments
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 //
Bank of Shanghai invites Fu Qiang, equity partner of Dentons Shanghai Office, to bring you "Law Firms on Internal Control: Interpretation of the Actual Payment Obligation Requirements under the New Company Law" of "In-depth Discussion on the Bond Market".