The Central Bank of China did not launch a 7-day reverse repurchase operation on August 11. Interviewees believe that the “zero operation” of this reverse repurchase was mainly due to abundant liquidity and declining financing needs of financial institutions at the beginning of the month. Looking ahead to the future market, institutions generally believe that the “zero operation” of reverse repurchases will not change the overall environment of reasonable and abundant liquidity in the second half of the year. Wang Qing, chief macro analyst at Dongfang Jincheng, said that this “zero operation” mainly reflects insufficient reporting requirements from financial institutions; it is not the central bank's initiative to tighten liquidity. Wang Qing expects that as the tax period approaches and the pace of issuing government bonds accelerates, financial institutions' financing needs will gradually pick up, and the central bank will also resume 7-day reverse repurchase operations. Overnight reverse repurchases may play a more moderating role when capital requirements increase at the end of August. Regarding ultra-long-term bonds, the Zheshang Bank fixed income team believes that the downward trend in yield has not yet been disrupted, and there is still room for further flattening of the yield curve. However, the decline in short-term returns has slowed, which means that the lower limit of capital prices has gradually become clear, and the room for simultaneous strengthening in the short and long term has narrowed.

The Central Bank of China did not launch a 7-day reverse repurchase operation on August 11. Interviewees believe that the “zero operation” of this reverse repurchase was mainly due to abundant liquidity and declining financing needs of financial institutions at the beginning of the month. Looking ahead to the future market, institutions generally believe that the “zero operation” of reverse repurchases will not change the overall environment of reasonable and abundant liquidity in the second half of the year. Wang Qing, chief macro analyst at Dongfang Jincheng, said that this “zero operation” mainly reflects insufficient reporting requirements from financial institutions; it is not the central bank's initiative to tighten liquidity. Wang Qing expects that as the tax period approaches and the pace of issuing government bonds accelerates, financial institutions' financing needs will gradually pick up, and the central bank will also resume 7-day reverse repurchase operations. Overnight reverse repurchases may play a more moderating role when capital requirements increase at the end of August. Regarding ultra-long-term bonds, the Zheshang Bank fixed income team believes that the downward trend in yield has not yet been disrupted, and there is still room for further flattening of the yield curve. However, the decline in short-term returns has slowed, which means that the lower limit of capital prices has gradually become clear, and the room for simultaneous strengthening in the short and long term has narrowed.