1 Year Central Bank Interest Rate Stabilized For 18 Weeks

Yesterday, the central bank issued a 30 billion yuan 1 year central bank ticket in the interbank market, an increase of 10 billion yuan compared with last week, with an interest rate of 1.9264%, which is stable for eighteenth weeks in a row.

On that day, the central bank did not buy repo operations.

On Thursday, March, the issuance rate of the central bank rose 4 basis points to 1.4492%, breaking the steady situation for 16 weeks. The market speculated that the issuance rate of the 1 - year central bank may also rise this week.

Therefore, the continued stability of the 1 - year central bank interest rate this week has made the market somewhat disappointed.

"This interest rate is too low, so we can not participate without participation."

A joint-stock bank bond official said.

The joint-stock bank is a dealer in the open market.

In recent days, the soaring capital interest rate has further forced the interest rate of the central bank.

Yesterday, overnight repurchase weighted interest rates rose 10.95 basis points to 1.8644%, 7 day repurchase weighted interest rate rose 6.47 basis points to 1.9472%, has been linked to 1 year central bank bond issuance rate of upside down.

Affected by the rising interest rate of funds, the interest rate of the two tier market of the 1 - year central bank has also gone up to about 2%, and the upside down space with the primary market has expanded. This makes the agency's enthusiasm for participating in the 1 - year central bank bidding further declined.

"The demand for institutions is still small. After all, the capital market is not so loose now."

Another joint-stock bank bond trader said.

There is still a big variable in the trend of the interest rate of the next 1 years.

Analysts believe that the high interest rate of funds makes the attractiveness of the 1 - year central bank interest rate fall greatly, and its circulation is difficult to increase. Therefore, it is not possible to exclude the possibility that the central bank raises the 1 - year central bank interest rate slightly to increase the circulation volume.

However, if the interest rate of the 1 - year central bank keeps rising after several months' stabilization, it may send a strong tightening signal to the market. Therefore, the central bank may also prefer to keep the interest rate stable.

Funds expended this week amounted to 180 billion yuan, including 95 billion yuan due to central bank tickets and 85 billion yuan due repo, an increase of 85 billion yuan over last week.

The central bank's open market operation this week will continue to put money into the market as a result of tight funding.