Bond Market Overview //1.Open Market Operations
On September 14, the central bank launched a 7-day reverse repurchase operation of 138.7 billion yuan in the form of fixed interest rate and quantity bidding, with an operating interest rate of 1.70%. Wind data shows that there is no reverse repurchase expiration on the same day, and the central bank has a net investment of 813 billion yuan in the open market for the whole week.
(*Data source: Wind-Central Bank Dynamic PBOC)
2. Funding side
Because Saturday is a compensatory day off and non-bank institutions are absent, most of the capital needs of major institutions across the Mid-Autumn Festival holiday have been in place, and the capital level of the interbank market is stable and loose; In the case that the reverse repo has no maturity, the central bank still has a net investment of more than 100 billion yuan in the open market, and the main repo rate has fallen.
Overseas, the latest United States overnight financing guarantee rate is 5.33%.
(IMM)
(*Data source: Wind-International Monetary Fund Sentiment Index, Capital Composite Screen)
3. Interbank certificates of deposit
The latest trading volume of one-year interbank certificates of deposit of state-owned and major joint-stock banks was 1.92%, down more than 1bp from the previous day.
(*Source: Wind-Interbank Certificate of Deposit-Issuance Results)
4. The yield of major interbank interest rate bonds fell across the board
(*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 are closed (*Data source: Wind-Treasury bond futures)
News //
1. The "Report of the State Council on the Implementation of the Budget Since the Year of this Year" proposes to prevent and resolve the risk of local government debt. We will do a good job in coordinating risk mitigation and stable development, further implement the package of debt reduction plans, and the province will take overall responsibility and cities and counties will do their best to reduce the level of debt risk. Strengthen the control of the financing demand side and the supply side, and block the path of new hidden debts. Establish a full-caliber local debt monitoring mechanism, strengthen cross-departmental data and information sharing and application, and resolutely curb false debts and new hidden debts.
2. The Ministry of Finance will issue a number of treasury bonds by bidding on September 24, namely the new issuance of 60 billion yuan of 30-year special treasury bonds, the renewal of 142 billion yuan of 10-year book-entry interest-bearing treasury bonds, and the new issuance of 137 billion yuan of 2-year book-entry interest-bearing treasury bonds.
Global Macro //
1. The 2024 G20 Digital Economy Ministerial Meeting will be held in Maceio, Brazil. The meeting held extensive discussions on topics such as universal and meaningful connectivity, digital government, information integrity, and artificial intelligence, and deliberated and adopted the G20 Ministerial Declaration on Digital Economy.
Bond Events //
1. Bureau of Statistics: In August, among the 70 large and medium-sized cities, the sales prices of commercial housing in all tiers of cities decreased month-on-month, and the year-on-year decline generally expanded slightly
2. Bureau of Statistics: From January to August, the national real estate development investment was 6,928.4 billion yuan, a year-on-year decrease of 10.2%
3. In the first 8 months, the financing cost of 65 typical real estate enterprises added bonds by 3.01%, a decrease of 0.59 from last year
4. Hong Kong Financial Secretary: Details of the HK$20 billion retail green bond and infrastructure bond issuance will be announced in the coming months
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 //
Every Monday at 3 p.m., Wind joins hands with Bank of Shanghai to bring a new series of Wind Live columns [In-depth Discussion on the Bond Market]!