First: The rhythm of fiscal revenue and expenditure drives liquidity.

Fiscal financing has led to an increase in the supply of quasi-fiscal-related bonds. Large state-owned banks have undertaken a large number of special bonds and policy bank bonds. The intensive issuance of bonds has suppressed the funding of large state-owned banks in the short term.

Second, there are structural pressures on the credit extension of major banks, credit expansion, tight liquidity, and increased creditworthiness of corporate bonds, causing interest rates to rise.

Third, the shortage of inter-bank funds and the sharp fall in the bond market caused a shock, resulting in tight liquidity. The interbank certificate of deposit interest rate rose rapidly. Money market funds needed to adjust their deviations and faced redemption pressure. At this time, the money market funds had to sell off assets.

Causing bond interest rates to rise.