Macro market:
[central bank] on April 7, in order to maintain the reasonable and abundant liquidity of the banking system, the central bank launched a 7-day open market reverse repurchase of 10 billion yuan by means of interest rate bidding, with an interest rate of 2.10%. On the same day, 150 billion yuan of reverse repurchase expired, realizing a net return of 140 billion yuan.
[finance] on April 7, treasury bond futures closed up across the board, with 10-year main contracts up 0.21%, 5-year main contracts up 0.13% and 2-year main contracts up 0.06%. The yields of major inter-bank interest rate bonds generally declined, and the performance of short-term bonds was relatively good. The yield of 10-year CDB active bond 220205 decreased by 2.45bp to 2.983%, the yield of 10-year Treasury bond 220003 decreased by 2bp to 2.74%, and the yield of 5-year treasury bond 220002 decreased by 1.25bp.
[finance] on April 7, money market interest rates rose and fell, and the capital side of the inter-bank market was still loose. The one-day interbank borrowing between banks and depositors was reported at 1.8419%, down 1.7 basis points; The 7-day report was 2.0620%, up 5.73 basis points; The 14 day report was 2.0531%, up 5.63 basis points; The one-month report was 2.2524%, down 5.83 basis points. Inter bank pledged repo 1-day varieties reported 1.8131%, down 1.51 basis points; The 7-day report was 2.0223%, up 4.9 basis points; The 14 day report was 1.9524%, down 2.9 basis points; The one-month report was 2.1214%, up 7.21 basis points.
[enterprise] on April 7, the yield of credit bonds of all maturities fell across the board, with a sharp decline of 3-5 basis points in one-year term, and nearly 130 billion yuan was traded throughout the day, of which real estate bonds continued to fluctuate sharply. A total of 1549 inter-bank and exchange credit bonds (corporate bonds, corporate bonds, medium notes, short-term financing and directional instruments) were traded, with a total turnover of 128128 billion yuan. Among them, 877 credit bonds rose, 131 credit bonds were flat, and 507 credit bonds fell.
[enterprise] in March, Caixin China's service industry PMI recorded 42.0, down 8.2 percentage points from February, the lowest since March 2020. In March, Caixin China's comprehensive PMI decreased by 6.2 percentage points to 43.9, the lowest since March 2020, indicating that the recent epidemic has led to the contraction of enterprise production and operation activities again.
[residents] on April 7, the number of commercial housing transactions in 30 cities, large and medium-sized cities and first tier cities was 142% higher than the previous day, and the transaction area of commercial housing was + 149% higher than the previous day; The number of commercial housing transactions in second tier cities was + 444% compared with the previous day, and the transaction area of commercial housing was + 540% compared with the previous day; The number of commercial housing transactions in the third tier cities was + 359% and the transaction area of commercial housing was + 300% compared with the previous day.
[residents] one day tour of "relay loan" in Guangzhou on April 7. Some banks in Guangzhou have started the "relay loan" again. The age of the main lender needs to be between 18 and 65. The longest loan is 30 years according to the age of the children. The running water of parents and children meets more than twice the monthly supply, with a minimum of 5.4% for the first set and 5.6% for the second set. But as things continue to ferment, the bank has urgently stopped the project. Although the relay loan was stopped, the housing loan in Guangzhou did decrease significantly. At present, HSBC can adjust the first house in Guangzhou to the LPR benchmark, i.e. 4.6%, and the loan interest rate of the second house is the lowest LPR + 60BP, i.e. 5.2%.
Recent focus: Overseas tightening monetary policy more than expected constraints on China's monetary policy
