On May 15, the central bank launched a new monthly medium-term lending facility (MLF) as usual. 1 year, the newly-increased MLF scale is 1000 billion yuan, the interest rate remains unchanged at 295%, and there is no reverse repurchase operation on that day. Meanwhile, 200 billion yuan of targeted cuts to required reserve ratios capital landed today, achieving a net liquidity investment of 300 billion yuan.
Yesterday (May14), 200 billion yuan MLF expired, when the central bank did not renew it. Compared with the maturity scale, the scale of new MLF has been reduced today, and the interest rate has not been lowered as expected by the market. The expectation of further relaxation of monetary policy failed, which led to the trading of treasury bonds futures market today, which plunged for a short time after convergence and then rose rapidly.
However, even if the operation of monetary policy is a little light in the short term, this does not mean relaxing the changes in the overall environment.