How to view the central bank's bond sale? China Post fixed income: It is expected that the scale of operations may be difficult to increase, and more attention is paid to the release of price guidance signals

Jinshi data news on July 1st, China Post fixed income issued a document stating that, overall, the central bank's sale of government bonds has been very rare in history, not the mainstream of open market bond trading operations, and historically the use of tools has been mainly for liquidity adjustment, with occasional active price guidance, but individual cases are also rare. Referring to our analysis of the central bank's government bond holdings structure, it may be difficult to sell directly, and the scale of individual bonds with a remaining maturity of up to 8 years is not large. The central bank has also never conducted outright repurchase operations in history, and the actual operational mode remains to be verified. However, it is expected that the scale of operations may be difficult to release, and more attention is paid to the release of price guidance signals.