The central bank to cut interest rates again show a strong signal

Despite the three-month central guiding role in the price of tickets a year as the central strong vote, but issued a direct interest rates drop 80 basis points or a very rare phenomenon Powei central bank interest rates to issue tickets cost of capital Only a week away, the three-month central bank bills issued yield levels suddenly plummeted 81 basis points, and commercial banks of the Po Wei direct cost of capital line. Yesterday, the results of open market operations to stimulate the market again on the central bank will cut interest rates in the short term expectations. Bank and the cost of capital upside down Yesterday, the central bank on the open market by issuing central bank bills 10,000,000,000 yuan within three months, resulting in the level of yield fell to 2.0156 percent, over the previous week to issue plummeted by 81 basis points. Only a week away, the three-month bank bills yield back to the level of May 2006 period. More than the market expected, the latest three-month central bank bills interest rates have been lower than the cost of capital of commercial banks line. According to industry research firm estimates that after the central bank twice cut interest rates, the current cost of capital of commercial banks in the line of about 2.1 percent or so. This means that short-term central bank bills yield has been with the bank's cost of capital upside down 9 basis points. So fresh in the memory market, a month ago on the open market a year had significantly reduced the interest rate the central bank to issue notes, the results will be announced two days after the central bank "double-down." In that case, the three-month central bank bills issued straight down interest rates substantially and will be a loosening of monetary policy signals? Down the pace faster than that of the secondary market Since the beginning of October the central bank announced the rate cut for the second time, in order to stabilize the money market interest rates, the central issue of voting interest rates usually lag behind the rate of decline in the market, a market that is often the result of the tender by the secondary market trend. However, the central bank's three-month bills down the pace of the march is ahead of the secondary market. Just yesterday, when opened, the votes of the three-month central contract is still in the rate of return 2.2% to 2.3% between. Shu Liao, an outcome of the bidding market has "one step", at current market prices lower than the 20-30 basis points. As a result, the secondary market by an anti-drag on the market, closing three months of votes in the central market of 10 basis points lower to 2.1 percent in the vicinity, an inverse 9 basis points higher than the market. Industry analysts believe that despite the votes of the three-month price guidance of the central role of the central counting strong as a year, but issued a rate of 80 basis points straight down the phenomenon is quite rare, have raised concerns. At present, in particular, its yield has been inverted and the cost of the bank, which hinted that the bank did not rule out the cost of capital line will be likely to decline further. One central counting the cost has dropped to near-line Three months by the central issue of voting results yesterday, the central one-year rate of return tickets from opening when it fell to 2.4 percent of 2.2 percent, commercial banks have been close to the line cost of capital. On the whole, the inter-bank market yesterday, one year of closing the central counting yield, the overall reduction of about 25 BP. An inter-bank market, traders said, even if there is no short-term interest rates, generous funding will also face further down the money market yield levels. The money that is spent, under pressure from short-term bond yields lower than the cost of capital is likely to become the norm. This week, on the open market to a market funds invested a net 84,500,000,000 yuan, the highest single week of the largest funds in the second half of the net amount invested.