MLF returns to the rivers and lakes

CSI.com (Reporter Zhang 杭州桑拿 Qinfeng) After missing the optimal time window for downgrading, the news of the MLF operation on the 17th was basically called the answer to the short-term reduction.

  The open market business transaction announcement states that in order to maintain a reasonable and sufficient liquidity of the banking system, according to the current term structure of liquidity requirements, on April 17, 2019, the People’s Bank of China launched a reverse repurchase operation of US $ 160 billion and an MLF operation of US $ 200 billion.

No budget reverse repurchase expires today, with 366.5 billion MLF expiring.

Therefore, from the perspective of the entire caliber, the amount of liquidity investment in the transitional open market today is roughly equivalent to the amount of withdrawals due to maturity, achieving a small net withdrawal.

  Compared with the previous day, today’s reverse repurchase operation is fully heavy today, indicating that the short-term and short-term liquidity investment rate has increased significantly.

At the same time, the first MLF operation in 3 months was carried out in advance to hedge the expiration of large MLF.

The first MLF operation was carried out on January 23rd.

  However, the amount of MLF operations released this time is less than the expired amount. It has been quite rare in the past one or two years, and may be unexpectedly exceeded by many people.

The interpretation of the announcement is due to the term structure of the current liquidity demand.

  Analysts pointed out that due to factors such as the tax period, short-term liquidity supply and demand are tight, and an extended 7-day reverse repurchase operation can meet the organization’s short-term liquidity demand across the peak of the tax period.

However, the remaining amount of MLF is not enough to continue, which means that part of the medium and long-term liquidity is also collected at the same time; the reason is still to be checked, and whether there will be further actions in the future is also worthy of attention.

  However, many analysts believe that the resumption of “MLF + reverse repurchase” means that the 4-month RRR cut has basically failed.

In fact, last weekend may already be the last time window for the April RRR cut. Because it takes time from the announcement to the implementation of the RRR cut, the time window has been missed, and the RRR cut cannot penetrate the hedging 杭州桑拿网 of the 4-month tax period peak and the MLF toPeriod and other factors.

Nowadays, the long-term choice to realize the liquidity gap by carrying out reverse repurchase and MLF operations has basically declared that the short-term will no longer be reduced.

  It is worth mentioning that the first quarterly meeting of the Monetary and Monetary Policy Committee, which has been gradually implemented recently, attracted attention due to the re-introduction of “maintaining strategic stability”, “putting a good gate of money supply”, and “not engaging in flood irrigation”.

With the changes in economic and financial indicators, the market is also re-aggregating the consensus on the orientation of monetary policy, and gradually regaining the “MLF + reverse repurchase” operation combination can provide some reference.